| 00:00:00 | ECONOMICS. |
| 00:00:01 | YOU ARE JUST BACK FROM CHINA. |
| 00:00:02 | WHAT DID YOU LEARN? |
| 00:00:04 | GUEST: THE ECONOMY IS BOOMING. |
| 00:00:07 | THE AUTHORITIES ARE TRYING TO SLOW THINGS DOWN A LITTLE BIT IN THE PROPERTY SECTOR AND THEY ARE WORRIED ABOUT WHAT IS HAPPENING IN EUROPE PAUSE EUROPE IS THEIR BIGGEST EXPORT MARKET. |
| 00:00:17 | I THINK THOSE ARE THE KEY TAKEAWAYS. |
| 00:00:19 | HOST: HOW WORRIED ARE THEY ABOUT THE U. |
| 00:00:22 | S.? GUEST: I THINK THEY ARE RELATIVELY GOVERNMENT -- CONFIDENT THE U. |
| 00:00:29 | S. RECOVERY IS STRONG. |
| 00:00:30 | THEY BELIEVE THE POSSIBILITY OF A DOUBLE DIP IS PRETTY HIGHWAY SO THE PRIMARY FOCUS IS EUROPE. |
| 00:00:37 | HOST: TO THE MACHINERY OF THE ECONOMY IN CHINA AND WE WILL TALK ABOUT THE IMPACT ON THE U. |
| 00:00:42 | S., WHY DO AT THE NEED TO SLOW THE ECONOMY? |
| 00:00:45 | GUEST: THEY ARE GROWING ABOVE POTENTIAL, THE FOURTH QUARTER WAS 11% TO 12% WHICH IS CERTAINLY ABOVE THEIR LONG-TERM POTENTIAL GROWTH. |
| 00:00:53 | WHEN ANY ECONOMY IS ABOVE THE LONG-TERM POKES GROWTH YOU ARE GOING TO GENERATE EVENTUALLY INFLATION AND A LOT OF DISTORTIONS AND DISLOCATIONS. |
| 00:01:01 | THEY WANT TO BRING IT DOWN SLIGHTLY. |
| 00:01:04 | HOST: TO EUROPE, THEIR BIGGEST CONCERN IS WHAT AT THIS POINT WITH THE CONNECTION TO CHINA? |
| 00:01:10 | GUEST: I THINK THE BIGGEST CONCERN IS EUROPE WILL NOT RECOVER STRONGLY. |
| 00:01:16 | WE SAW THE FIRST QUARTER GROWTH IN EUROPE IS A SMALL FRACTION OF 1%, VERY WEAK COMPARED TO THE UNITED STATES. |
| 00:01:23 | THEY THINK BECAUSE OF THE SOVEREIGN DEBT CRISIS FROM GREECE AND SPREADING TO OTHER COUNTRIES THAT GOVERNMENTS ACROSS THE REGION WILL CUT FISCAL EXPENDITURES AND THAT IS LIKELY TO WEAKEN ECONOMIC GROWTH GOING FORWARD. |
| 00:01:36 | THEY ARE WORRIED ABOUT A SLOW EUROPEAN RECOVERY THAT COULD BE SLOW FOR A NUMBER OF YEARS AS MANY ECONOMIES IN THE REGION TRY TO GET THEIR FISCAL HOUSE IN ORDER. |
| 00:01:47 | HOST: THE PHONE NUMBERS ARE ON THE BOTTOM OF THE SCREEN. |
| 00:01:52 | WE ARE TALKING ABOUT CHINA'S ECONOMY AND SPECIFICALLY THE IMPACT OBJECT U. |
| 00:01:56 | S. TRADE. |
| 00:01:57 | NICHOLAS LARDY HAS A PH. |
| 00:01:59 | D. FROM UNIVERSITY OF MICHIGAN, TALKED IN MANY PLACES, CURRENTLY SENIOR FELLOW AT THE PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS. |
| 00:02:07 | BACK TO THE U. |
| 00:02:08 | S. AN CHINA, YOU SAID THE CHINESE ARE NOT AS CONCERNED ABOUT THE U. |
| 00:02:13 | S. AS THEY ARE WITH EUROPE. |
| 00:02:14 | THEY FEEL FAIRLY CONFIDENT. |
| 00:02:17 | BUT EXPLAIN IN LAYMEN'S TERMS THE CONNECTION BETWEEN THE CHINESE ECONOMY AND OUR ECONOMY. |
| 00:02:22 | WHY ARE THE TWO SO LINKED? |
| 00:02:25 | GUEST: THE MAIN LINKAGE IS TRADE. |
| 00:02:29 | CHINA IS THE THE BIGGEST EX-PORTER IN THE WORLD AND WE ARE ONE OF THE BIGGEST MARKETS SO THEY ARE CONCERNED ABOUT THE PACE OF GROWTH IN THE UNITED STATES BECAUSE THAT DETERMINES HOW MUCH AMERICANS BUY AND THAT IS A BIG FACTOR IN DETERMINING WHAT THE CHINESE ARE ABE TO SELL TO US. |
| 00:02:42 | SO THEY ARE INTERESTED IN THE UNDERLYING HEALTH OF THE U. |
| 00:02:45 | S. ECONOMY. |
| 00:02:46 | HOST: WE WILL GET A LOT OF CALLS ON HOW MUCH DEBT THE CHINESE ARE HOLDING, U. |
| 00:02:51 | S. DEBT. |
| 00:02:52 | WHY IS THAT IMPORTANT? |
| 00:02:54 | GUEST: WE HAVE RUN AN EXTERNAL DEFICIT FOR MANY YEARS IN THE UNITED STATES. |
| 00:02:58 | WE HAVE TO BORROW MONEY FROM THE REST OF THE WORLD TO FINANCE OUR EXCESS CONSUMPTION. |
| 00:03:05 | CHINA HAS BEEN ONE OF THE BIGGEST SUPPLIERS OF THE LOANS THAT THEY HAVE MADE TO US AND THEY TAKE THE FORM OF CHINESE GOVERNMENT HOLDING TREASURY SECURITIES AND OTHER DOLLAR DENOMINATED FINANCIAL ASSETS. |
| 00:03:18 | BOND ISSUED BY FANNIE MAE, OTHER GOVERNMENT ENTITIES LIKE THAT. |
| 00:03:24 | HOST: WHAT DOES THIS MEAN FOR PEOPLE PEOPLE? |
| 00:03:28 | BEGIN HERE IN THE U.S. AND SPEAK ABOUT THE CHINESE PEOPLE. |
| 00:03:30 | WHAT DOES IT MEAN IN THEIR HOMES AND THEY IF OUT AND ABOUT? |
| 00:03:34 | FRPBLGT IN THE U. |
| 00:03:36 | S. WE SEE IT MOSTLY CONSUMER ELECTRONICS. |
| 00:03:39 | MOST OF THEM ARE PRODUCED IT CHINA. |
| 00:03:41 | IPHONES, I-PADS. |
| 00:03:43 | ALL OF THAT. |
| 00:03:44 | GO TO BEST BUY, CIRCUIT CITY, MANY IT NOT MOST OF THEM ARE MADE IN KLINE. |
| 00:03:50 | ON THE CHINESE SIDE THEY ARE BUYING A LOT OF CAPITAL GOODS THAT HELP THEIR INVESTMENT PROGRAMS THAT DISCRIMINATE THEIR ECONOMIC GROWTH. |
| 00:03:57 | SO IT IS A SYMBIOTIC RELATIONSHIP. |
| 00:04:01 | CHINA HAS A LARGE SURPLUS IN THE TRADE WITH THE UNITED STATES AND HAS HAD FOR MANY YEARS. |
| 00:04:05 | HOST: BEFORE WE GET TO CALLS WE KNOW TIM GEITHNER THE TREASURY SECRETARY WAS RECENTLY IN KLINE TALKING TO THEM ABOUT TRADE AND MONETARY TYPE ISSUES. |
| 00:04:15 | HOW ARE THE TKPWOFPTS GETTING ALONG THESE DAYS AS THEY TALK ABOUT THE DOLLAR AND TRADE ISSUES? |
| 00:04:21 | GUEST: I THINK REASONABLY WELL. |
| 00:04:23 | I THINK THERE WAS A PERIOD FOUR TO SIX MONTHS AGO WHERE WE WERE HITTING BUMPS IN THE ROAD. |
| 00:04:28 | I THINK THOSE HAVE BEEN MOSTLY PATCHED UP. |
| 00:04:31 | THE RELATIONSHIP IS CONSTRUCTIVE AND PRODUCTIVE. |
| 00:04:34 | I THINK THAT THEY HAD A GOOD SET OF MEETINGS IN BEIJING A COUPLE OF WEEKS AGO IN THE SO-CALLED STRATEGIC AND ECONOMIC DIALOGUE THAT WAS LED BY THE TREASURY SECRETARY AND SECRETARY OF STATE HILLARY CLINTON. |
| 00:04:45 | HOST: HOW ABOUT YOUR OWN MEETING MEETINGS AN VISIT TO CHINA? |
| 00:04:49 | WHAT WERE YOU DOING? |
| 00:04:51 | GUEST: I WAS IN BEIJING TALKING TO PRIMARILY TO UNIVERSITY BASED ECONOMISTS LOOKING AT WHAT CHINA HAS TO DO TO SUSTAIN THE ECONOMIC GROWTH OVER THE LONG RUN. |
| 00:05:01 | THEY HAVE HAD A RECORD RUN. |
| 00:05:02 | THEY HAVE GROWN MORE RAPIDLY FOR A LONGER PERIOD OF TIME THAN ANY OTHER COUNTRY IN RECORDED HISTORY. |
| 00:05:07 | AND MANY PEOPLE WERE WORRIED THERE WERE FACTORS THAT COULD DRAG DOWN THE RATE LOOKING AHEAD. |
| 00:05:12 | SO THE QUESTION IS WHAT KINDS OF POLICIES SHOULD THE GOVERNMENT BE ADOPTING TO SUSTAIN THEIR RAPID GROWTH. |
| 00:05:18 | HOST: WHAT ARE THOSE FACTORS THAT COULD DRAG THEM DOWN? |
| 00:05:21 | GUEST: THE FACTORS THAT COULD DRAG THEM DOWN IS UNDERCONSUMPTION. |
| 00:05:28 | OVERINVESTMENT. TOO MUCH RELIANCE ON EXPORTS AND MORE STRUCTURAL ISSUES LIKE THE ONE ONE-CHILD FAMILY POLICY IN IN EFFECT FOR A NUMBER OF DECADES MEANS THEIR LABOR FORCE GROWTH IS ENTERING A PERIOD OF VERY SLOW EXPANSION. |
| 00:05:43 | SO, DEMOGRAPHIC FACTORS. |
| 00:05:45 | AND POLLUTION. |
| 00:05:47 | THE ENVIRONMENTAL COST OF HIGH GROWTH THAT CHINA HAS HAD PARTICULARLY THE LAST FEW DECADES IS A MAJOR CONSTRAINT. |
| 00:05:55 | HOST: I WILL READ THE PHONE NUMBERS FOR THE BENEFIT OF OUR RADIO LISTENERS AS WELL. |
| 00:06:01 | [THE NUMBERS ARE ON THE SCREEN] |
| 00:06:10 | HOST: OUR GUEST IS NICHOLAS LARDY SENIOR FELLOW AT THE PETERSON INSTITUTE FOR INTERNATIONAL ECONOMICS. |
| 00:06:17 | MORE ABOUT THE CHINESE ECONOMIC FIGURES HERE. |
| 00:06:21 | THE TOTAL G. |
| 00:06:22 | D.P. IN 2009 $4. |
| 00:06:24 | 9 TRILLION. |
| 00:06:25 | HOW DOES THAT COMPARE TO THE U. |
| 00:06:27 | S.? GUEST: IT IS A SMALL FRACTION OF THE U. |
| 00:06:30 | S. AND IN IN PER CAPITA TERMS IT IS EVEN TYNIER. |
| 00:06:34 | SO, IN TERMS OF PER CAPITA G. |
| 00:06:37 | D.P. WE ARE 10 TO 15 TIMES AHEAD. |
| 00:06:39 | IT IS STILL A VERY LOW INCOME ECONOMY. |
| 00:06:42 | HOST: THEY HAVE A LABOR FORCE OF 813 MILLION PEOPLE. |
| 00:06:45 | WHAT DOES THAT MEAN? |
| 00:06:46 | GUEST: ABOUT HALF OF THEM ARE IN THE CURL SECTOR WHERE PRODUCTIVITY IS LOW. |
| 00:06:51 | A SUBSTANTIAL PORTION HAVE MOVED INTO THE MODERN SECTOR INTO MANUFACTURING AND INTO THE SERVICES SECTOR. |
| 00:06:58 | CHINA HAS THE BIGGEST MANUFACTURING ECONOMY OF ANY COUNTRY IN THE WORLD. |
| 00:07:03 | THEY ARE MASSIVE PRODUCERS OF A BROAD RANGE OF CONSUMER GOODS WE TALKED ABOUT, ALSO FOOTWEAR, TEXTILES, APPAREL. |
| 00:07:11 | INCREASINGLY MACHINERY. |
| 00:07:12 | THEY HAVE THE BIGGEST AUTOMOBILE INDUSTRY IN THE WORLD NOW AND THEY ARE MAJOR PRODUCERS OF A BROAD RANGE OF MACHINE TOOLS AND OTHER KINDS OF CAPITAL GOODS. |
| 00:07:21 | HOST: HOW WOULD YOU DESCRIBE THE TWO COUNTRIES AND THEIR NEED FOR EACH OTHER? |
| 00:07:25 | HOW IMPORTANT ARE THEY TO EACH OTHER? |
| 00:07:27 | GUEST: I THINK IT IS A SYMBIOTIC RELATIONSHIP IN PART BECAUSE OF SOME OF THE STRUCTURAL FACTORS. |
| 00:07:33 | WE DON'T SAVE SO MUCH SO WE NEED TO BORROW. |
| 00:07:37 | THEY HAVE EXCESS SAVINGS TO LEND. |
| 00:07:40 | THEY HAVE AN EXPORT SURPLUS THAT WE HAVE TAKEN IN SUPPORTING OUR HIGH CONSUMPTION LEVELS. |
| 00:07:46 | THEY HOLD OUR DEBT IN TURN. |
| 00:07:47 | SO, IT IS A SYMBIOTIC RELATIONSHIP I WOULD SAY. |
| 00:07:51 | HOST: HERE ARE THE CALLS NOW. |
| 00:07:53 | CHARLOTTE, NORTH CAROLINA. |
| 00:07:54 | JACOB, REPUBLICAN. |
| 00:07:56 | WELCOME TO THE PROGRAM. |
| 00:07:57 | CALLER: HOW ARE YOU DOING TODAY? |
| 00:07:59 | HOST: FINE. |
| 00:08:00 | CALLER: I WANTED TO CALL AND VOICE MY CONCERN WITH CURRENT SPENDING LEVELS AND HOW THEY RELATE TO THE WORLDWIDE ECONOMY. |
| 00:08:09 | SPENDING WITHIN THE U. |
| 00:08:11 | S. I'M 20 YEARS OLD SO I'M NOT WELL SEASONED IN THE REALM OF POLITICAL THOUGHT. |
| 00:08:16 | BUT IT SEEMS TO ME LIKE WITH SPENDING AS HIGH AS IT HAS BEEN THE LAST 10 YEARS WITH OUR MASSIVE OVERSEAS EMPIRE, WE ARE IN 140 COUNTRIES, HOW IS THAT GOING TO BE SUSTAINABLE TO KEEP THAT SORT OF SPENDING UP OVER THE LONG HAUL, THE NEXT 10 OR 20 YEARS? |
| 00:08:39 | HOST: BEFORE WE GET AN ANSWER LET ME RUN THIS STORY BY YOU. |
| 00:08:43 | THE PRESIDENT, THE WHITE HOUSE TODAY ASKING ALL AGENCYS TO TRIM AT LEAST 5% FROM THEIR BUCKETS. |
| 00:08:49 | THEY WANT DETAILS, THEY WANT THE INFORMATION BY SEPTEMBER. |
| 00:08:52 | WHAT DOES 5% MEAN TO YOU? |
| 00:08:54 | CALLER: THAT DOESN'T MEAN ANYTHING TO ME REALLY. |
| 00:08:58 | I'M 20 YEARS OLD. |
| 00:09:00 | AND I PERSONALLY HAVE DONE THE RESEARCH AND THE 1996 REPUBLICAN PARTY PLATFORM CALLED FOR THE CUTTING OF THE EDUCATION DEPARTMENT COMPLETE THELY AND I WAS AWE STRUCK WE I SAW THAT AND IT LOOKS TO ME LEAK 5% HERE AND THERE DOESN'T ADD UP TO MUCH. |
| 00:09:20 | WE GIVE FOREIGN AID TO ISRAEL AND MONEY TO PAKISTAN AND GIVE MONEY TO -- I DON'T KNOW. |
| 00:09:27 | WE ARE SPENDING SO MUCH AND IT SEEMS LIKE 5% IS A DROP IN THE BUCKET. |
| 00:09:32 | HOST: THANK YOU. |
| 00:09:34 | GUEST: WELL, I DON'T THINK THERE'S ANY DOUBT LONG TERM WE HAVE TO CUT OUR BUDGET DEFICIT. |
| 00:09:39 | WE HAVE TO BRING OUR DEBT DOWN AS A SHARE OF OUR TOTAL OUTPUT. |
| 00:09:45 | THE PRESIDENT HAS MADE A NUMBER OF COMMITMENTS TO DO THAT. |
| 00:09:49 | HE'S APPOINTED A BIPARTISAN COMMISSION TO GIVE HIM SOME IDEAS. |
| 00:09:53 | WE WILL HAVE TO SEE. |
| 00:09:54 | IN THE SHORT RUN WE DON'T WANT TO CUT TOO FAST BECAUSE WE ARE IN THE RECOVERY PHASE AND THE STIMULUS WHICH HAS INVOLVED A GREAT DEAL OF ADDITIONAL GOVERNMENT SPENDING HAS BEEN VERY IMPORTANT IN GENERATING THE RELATIVELY STRONG GROWTH WORE NOW EXPERIENCING. |
| 00:10:08 | SO WE WANT TO TAKE PLACE ARE OFF AND OVER THE NEXT THREE TO FIVE YEARS GET ON WHAT IS REFERRED TO IN ECONOMICS AS A MORE SUSTAINABLE FISCAL PATH, WHICH MEANS INCREASING REVENUES RELATIVE TO EXPENDITURES BY SOME COMBINATION OF HIGHER TAXES OR LOWER GOVERNMENT OUTLAYS. |
| 00:10:27 | THAT WILL REDUCE THE DEFICIT AND IN TURN OVER TIME ASSUMING WE CAN STILL GROW FAIRLY RAPIDLY IT WILL LEAD TO A REDUCTION IN THE TOTAL SIZE OF OUR DEBT RELATIVE TO THE SIZE OF ECONOMIC OUTPUT. |
| 00:10:42 | THAT IS WHAT WE SHOULD BE AIMING FOR. |
| 00:10:44 | HOST: DEAN FOR DEMOCRATS FROM LAUREL, MARYLAND. |
| 00:10:48 | CALLER: GOOD MORNING. |
| 00:10:50 | MY QUESTION IS FRAMED FROM A POINT OF VIEW THAT CHINA HAS A LONG HISTORY OF A LACK OF RESPECT FOR INDIVIDUAL RIGHTS. |
| 00:10:57 | WE HEAR RECENTLY WORKERS COMMITTING SUICIDE AND PLANTS THAT ARE LARGELY PRODUCING AMERICAN COMPANIES' GOODS. |
| 00:11:07 | WHAT DOES CHINA NEED TO DO TO BEGIN TO PROVIDE MATURE RIGHTS TO WORKERS? |
| 00:11:13 | AND IS CHINA WILLING AND ABLE TO TAKE THOSE STEPS BEING A DICTATORSHIP? |
| 00:11:18 | GUEST: WELL, I THINK THAT THE PREMISE OF THE QUESTION IS CORRECT. |
| 00:11:22 | CHINA DOES NOT PROVIDE WORKERS THE SAME RIGHTS THAT WE WOULD EXPECT TO FIND IN MOST INDUSTRIAL ECONOMIES. |
| 00:11:28 | THEY HAVE A SINGLE UNION THAT IS CONTROLLED COMPLETELY BY THE GOVERNMENT. |
| 00:11:32 | THEY DON'T NEGOTIATE ON WAGES AND WORKING CONDITIONS. |
| 00:11:35 | AND COMPANIES TEND TO BE IN THE DRIVER'S SEAT. |
| 00:11:38 | HAVING SAID THAT, THE COMPANY THAT HAS A LOT OF ATTENTION RECENTLY FOR SUICIDE HAS A FAIRLY GOOD RECORD. |
| 00:11:44 | THEY HAVE BETTER LIVING CONDITIONS, HIGHER WAGES, MORE AMENITIES PROVIDED TO THEIR WORKERS THAN IN MANY OTHER FACILITIES. |
| 00:11:54 | THE BIG DOWN SIDE IS WORKERS ARE REQUIRED TO WORK SIGNIFICANT AMOUNTS OF OVERTIME FREQUENTLY IN VIOLATION OF CHINA'S OWN LABOR LAWS WHICH ARE NOT ALWAYS ENFORCED. |
| 00:12:04 | HOST: THAT BEING SAID, BUSINESS DAY SECTION OF THE NO, TIMES TODAY HAVE A HEAD LIEN AS CHINA'S WAGES RISE EXPORT PRICES COULD FOLLOW. |
| 00:12:12 | THE COST OF DOING BUSINESS IS GOING UP THEY SAY THE COASTAL FACTORIES ARE INCREASING HOURLY PAYMENTS TO WORKERS, MINIMUM WAGE STANDARDS ARE BEING RISEN. |
| 00:12:22 | IF THEY ALLOW THE CURRENCY TO APPRECIATE AGAINST THE DOLLAR THIS YEAR AS MANY ARE PREDICTING THE RELATIVE COST OF MANUFACTURING IN CHINA WILL ALMOST CERTAINLY RISE. |
| 00:12:32 | WHAT ARE YOUR THOUGHTS? |
| 00:12:34 | GUEST: WAGES HAVE BEEN GOING UP IN CHINA FOR MANY YEARS SO THIS IS NOT NEW. |
| 00:12:39 | MAYBE A LITTLE MORE RAPID AT THIS TIME. |
| 00:12:40 | THE KEY THING TO KEEP IN MIND IS PARTICULARLY IN THE ASSEMBLY FACTORIES WHICH DOMINATE ON THE SOUTHEAST COAST, PRODUCING SUCH A BROAD RANGE OF CONSUMER ELECTRONICS, THE COST OF LABOR REPRESENTS A VERY SMALL PORTION OF THE TOTAL COST OF PRODUCTION. |
| 00:12:55 | SO, WAGES MAY GO UP 20% BUT IF IN THE WAGE BILL IS ONLY 5% OF THE TOTAL COST, THAT WILL NOT TRANSLATE INTO MUCH OF AN INCREASE IN TERMS OF WHAT U. |
| 00:13:09 | S. CONSUMERS WOULD SEE. |
| 00:13:10 | SO, IN SOME PRODUCTS MAYBE A LITTLE MORE BUT IN CONSUMER ELECTRONICS WHICH IS OUR BIGGEST CATEGORY OF IMPORT FROM CHINA, I WOULD NOT EXPECT TO SEE A BIG FEED THROUGH TO PRICES FROM THE HIGHER WAGES. |
| 00:13:22 | HOST: JOHN IS ON THE LINE FROM LANCASTER, PENNSYLVANIA, INDEPENDENT. |
| 00:13:26 | GO AHEAD. |
| 00:13:27 | CALLER: YES, I HAVE A QUESTION. |
| 00:13:29 | I WOULD LIKE TO TPHOEKNOW, WE ARE A CONSUMER BASED ECONOMY AND IF WE DON'T PRODUCE WHAT WE CONSUME I THINK THAT THE ONLY THING WE HAVE BEEN CREATING THE LAST 30 YEARS IS A MOUNTAIN OF DEBT. |
| 00:13:42 | COULD YOU EXPLAIN TO ME HOW WE BENEFIT FROM MOVING OUR PRODUCTION OVER TO CHINA? |
| 00:13:50 | GUEST: WELL, I THINK TO BEGIN WITH SOME BASICS, THE UNITED STATES STILL PRODUCES MORE MANUFACTURED GOODS THAN ANY OTHER COUNTRY IN THE WORLD. |
| 00:14:01 | WE PRODUCE ABOUT 25% OF GLOBAL MANUFACTURING OUTPUT IN THE UNITED STATES. |
| 00:14:05 | THAT IS ROUGHLY THE SAIL SHARE WE PRODUCED 10 YEARS AGO. |
| 00:14:09 | SO, A LOT OF PEOPLE HAVE THE IMPRESSION EVERYTHING HAS BEEN OUTSOURCE AND IT IS ALL BEING PRODUCED IN IN CHINA OR SOMEWHERE ELSE. |
| 00:14:15 | CERTAINLY A LOT OF GOODS ARE BEING PRODUCED IN LOCATIONS BUT WE ARE STILL PRODUCING ABOUT A QUARTER OF ALL MANUFACTURED GOODS. |
| 00:14:23 | WE ARE ABLE TO DO THAT PAUSE PRODUCTIVITY HAS RISEN AND THE WORKFORCE HAS NOT RISEN MUCH BECAUSE OUTPUT PER WORKER IS GROWING RAPIDLY AND THEY GET HIGHER WAGES. |
| 00:14:32 | IN MANY CASES, TO BE COMPETITIVE YOU HAVE TO PRODUCE BROAD. |
| 00:14:38 | CATERPILLAR MAKES A HUGE AMOUNT OF HEAVY CONSTRUCTION EQUIPMENT IN CHINA. |
| 00:14:42 | THEY CAN NOT MAKE IT IN THE UNITED STATES AND SUCCESSFULLY SHIP IT TO CHINA. |
| 00:14:47 | THE COST OF SHIPPING GIVING THE SIZE AND WEIGHT IS PROHIBITIVE. |
| 00:14:51 | SO, WHEN YOU HAVE A BIG MARKET LIKE CHINA COMPANIESLIKE CARTER PERFORM AND OTHERS ARE GOING TO PREFER AND ARE TO MAKE PRODUCT IN CHINA TO BE ABLE TO SELL IT SUCCESSFULLY THERE. |
| 00:15:03 | THERE ARE MANY AMERICAN COUNTRIES LIKE THAT. |
| 00:15:05 | HOST: WE HAVE A CALL FROM EAST LIKE, OHIO, TOM ON THE DEMOCRAT LINE. |
| 00:15:11 | CALLER: GOOD MORNING. |
| 00:15:12 | MY QUESTION IS PRIMARILY WHAT DOES THE CHINESE NEED THAT WE CAN PRODUCE? |
| 00:15:21 | HOST: FLIPPING IT AROUND. |
| 00:15:23 | WHAT DO THE CHINESE WANT FROM THE U. |
| 00:15:25 | S.? GUEST: THERE IS FAIRLY BROAD RANGE OF THINGS. |
| 00:15:28 | WE START WITH THE OBVIOUS ONES LIKE AIRCRAFT. |
| 00:15:31 | THEY ARE ONE OF THE BIGGEST PURCHASERS OF AIRCRAFT. |
| 00:15:34 | THEY PURCHASE A LOT OF COMPUTER CHIPS, INTEGRATED CIRCUITS. |
| 00:15:38 | HUGE ON INTEL AND OTHER COMPANIES LIKE THAT ARE SELLING BILLIONS. |
| 00:15:43 | THEY ARE THE BIG HE ISGEST IMPORTER OF TOES THINGS AND A LARGE PORTION OF THEM ARE MADE IN THE THE UNITED STATES. |
| 00:15:50 | THEY ALSO ARE THE BIGGEST MARKET FOR SOYBEANS AND U. |
| 00:15:55 | S. PRODUCED COTTON. |
| 00:15:56 | SO IT IS A RANGE OF THINGS FROM SOPHISTICATED MANUFACTURED GOODS TO CERTAIN AGRICULTURAL PRODUCTS IN IN WHICH WE HAVE A STRONG COMPETITIVE POSITION. |
| 00:16:05 | HOST: OUR GUEST HAS WRITTEN A COUPLE OF BOOKS ON CHINA. |
| 00:16:11 | ONE IS CHINA THE BALANCE SHEET. |
| 00:16:14 | OUR GUEST IS NICHOLAS LARDY SENIOR FELLOW OF THE PETERSON INSTITUTE. |
| 00:16:20 | NEXT CALL IS SPRINGFIELD, MISSOURI, BRUCE ON THE INDEPENDENT LINE. |
| 00:16:25 | CALLER: GOOD MORNING. |
| 00:16:26 | WHY ARE WE DOING BUSINESS WITH CHINA FIRST OF ALL? |
| 00:16:30 | THEY ARE AND ALWAYS WILL BE -- WHY ARE WE NOT BUILDING MORE COMPANIES IN THIS COUNTRY TO BRING JOBS BACK? |
| 00:16:39 | WE HAVE PEOPLE OUT OF WORK, MANY PEOPLE OUT OF WORK. |
| 00:16:43 | THE COUNTRY HAS GONE DOWNHILL SINCE WORLD WAR II. |
| 00:16:48 | AND IT HAS BEEN TAKEN ON THE ASPECTS OF REBUILDING EVERY OTHER COUNTRY IN THE WORLD AND GIVING MONEY TO ALL OTHER COUNTRIES. |
| 00:16:58 | WE BORROW MONEY FROM CHINA TO GIVE MONEY TO OTHER COUNTRIES. |
| 00:17:05 | IT DOES NOT LOOK LIKE OUR GOVERNMENT HAS DONE THEIR JOB TO PROTECT OUR COUNTRY FROM THESE OVERSEAS INDUSTRIES. |
| 00:17:14 | HOST: NOT AN UNCOMMON REFRAIN. |
| 00:17:18 | GUEST: WELL, IF YOU TAKE THE LONG-TERM PERSPECTIVE IT CERTAINLY IS TRUE THE UNITED STATES IS A LESS DOMINANT FORCE IN THE GLOBAL ECONOMY THAN 50 OR 60 YEARS AGO IN A PERIOD AFTER WORLD WAR II WHEN MOST OF EUROPE EUROPE, THE SOVIET UNION AND SO FORTH WERE DEVASTATED BY THE WAR AND WE SURVIVED IN A RELATIVELY STRONG POSITION WITH A VERY STRONG INDUSTRIAL BASE ONE THAT GREW SUBSTANTIALLY DURING THE SECOND WORLD WAR. |
| 00:17:45 | SO, IT WAS INEVITABLE THAT OUR SIZE OF OUR ECONOMY RELATIVELY TO THE GLOBE WOULD DECLINE. |
| 00:17:54 | I DON'T THINK THAT IS A REFLECTION OF FAILURE ON OUR PART. |
| 00:17:57 | WE STILL ARE THE BIGGEST MANUFACTURING POWER IN THE WORLD. |
| 00:18:00 | WE HAVE THE HIGHEST STANDARD OF LIVING. |
| 00:18:02 | AND WE GAIN ENORMOUSLY FROM TRADE WITH OTHER COUNTRIES. |
| 00:18:05 | WE BUY THINGS FROM THEM THAT WE CAN'T PRODUCE OR WE CAN'T PRODUCE AS CHEAPLY AND SELL OUR GOODS TO THE REST OF THE WORLD. |
| 00:18:12 | AND SOPHISTICATED ECONOMIC STUDIES HAVE BEEN DONE THIS SHOW WE ARE GAINING ROUGHLY A TRILLION DOLLARS A YEAR FROM THE TRADE LIBERALIZATION THAT OCCURRED THE LAST SEVERAL DECADES. |
| 00:18:22 | SO THAT IS SEVERAL THOUSAND DOLLARS PER FAMILY WE ARE BETTER OFF AS A RESULT OF OR TRADE RELATIONS WITH THE REST OF THE WORLD. |
| 00:18:31 | HOST: THIS A QUESTION ABOUT THE INDIVIDUAL IN CHINA. |
| 00:18:38 | WHAT IS THEIR PURCHASING POWER? |
| 00:18:41 | GUEST: WORKERS IN FACTORIES IN SOUTH KHAOEUPBCHINA MAY BE EARNING $300 A MONTH TAKE-HOME PAY WHICH STRIKES US AS BEING EXTREMELY LOW. |
| 00:18:51 | BUT THEY WOULD BE AMONG THE BETTER PAID WORKERS IN CHINA. |
| 00:18:55 | ONE OF THOSE THINGS, THEY BUY LOOT MORE IN CHINA THAN IN THE UNITED STATES. |
| 00:19:01 | IT IS A LOW INCOME COUNTRY. |
| 00:19:03 | SERVICES COST LESS. |
| 00:19:05 | SOME GOODS COST A LOT LESS. |
| 00:19:07 | SO, THE MONEY GOES MUCH FURTHER IN CHINA THAN THE UNITED STATES. |
| 00:19:12 | INCIDENTALLY, I DON'T THINK WE ARE SELLING ANY SHOES IN CHINA. |
| 00:19:15 | CHINA IS SUPPLYING THE REST OF THE WORLD ABOUT BILLIONS OF PAIRS OF SHOES EACH YEAR. |
| 00:19:22 | THEY ARE THE LARGEST PRODUCER OF SHOES. |
| 00:19:24 | HOST: FROM SPENDING TO SAVING, WHAT IS THE SAVINGS RATE IN CHINA? |
| 00:19:28 | HOW DOES IT COMPARE TO THE UNITED STATES? |
| 00:19:31 | IS IT IMPORTANT? GUEST: IF WE LOOK AT THE HOWLS HOLD SECTOR WHICH IS WHAT MOST PEOPLE LOOK AT IN SAVINGS, IN THE RUN-UP TO THE FINANCIAL CRISIS U. |
| 00:19:41 | S. HOUSEHOLDS WERE NOT SAVING ANY MONEY. |
| 00:19:43 | IN SOME PERIODS THEY WERE DISSAVING, GOING MORE INTO DEBT. |
| 00:19:48 | SO THE RATE WAS NEGATIVE. |
| 00:19:50 | SINCE THE THE FINANCIAL CRISIS IT HAS GONE UP. |
| 00:19:53 | AMERICANS NOW ON AVERAGE ARE SAVING ABOUT 3% TO 4% OF THEIR AFTER-TAX INCOME. |
| 00:20:01 | IN CHINA HOWLS HOLD SAVE ABOUT 25% OF THEIR AFTER-TAX INCOME. |
| 00:20:06 | SO WE ARE AT OPPOSITE ENDS OF THE SPECTRUM. |
| 00:20:09 | WE HAVE ONE OF THE LOWEST SAVINGS RATES IN THE WORLD AND CHINA IS RELATIVELY ON THE HIGH SIDE. |
| 00:20:15 | NOT UNPRECEDENTEDLY HIGH. |
| 00:20:18 | BUT 25% VERSUS 3% CAPTURES IN. |
| 00:20:22 | HOST: LINCOLN, NEBRASKA, MARVIN. |
| 00:20:24 | DEMOCRATIC CALLER. |
| 00:20:25 | CALLER: HELLO. |
| 00:20:26 | THIS IS MARVIN. |
| 00:20:29 | I'M A HANDYMAN AND I WORK FOR A LARGE REAL ESTATE COMPANY IN CALIFORNIA AS A PROPERTY MANAGER. |
| 00:20:37 | BUT EIGHT YEARS AGO THE CHINESE GOODS STARTED COMING IN TO BIG BOX STORES. |
| 00:20:43 | PEOPLE WANTED THE CHEAPER PRICES FOR THE THINGS I INSTALL BUT THE PROBLEM IS THE QUALITY IS SO POOR THAT I'M WORRIED FIVE YEARS LATER THE HOUSES WILL BE BURNING DOWN BECAUSE THERE IS NO COPPER IN THE WIRING AND AS OF LATE YOU CAN'T EVEN BUY A PAINT BRUSH. |
| 00:21:01 | THEY ARE MADE IN CHINA AND WHEN YOU OPEN THE BAG THEY FALL APART BEFORE YOU GET THEM OUT OF THE BAG. |
| 00:21:08 | I THINK OUR INFRASTRUCTURE IS REALLY UNDER ATTACK BY THE SHODDY QUALITY OF CHINESE GOODS. |
| 00:21:13 | HOST: PRODUCT STANDARDS THERE. |
| 00:21:15 | GUEST: WELL, IT TRUE CHINA DOES COMPETE ON PRICE AND QUITE A FEW GOODS AND IN SOME KINDS OF GOODS THEY WILL BE RELATIVELY LOW QUALITY. |
| 00:21:25 | THEY WON'T LAST ASSLONG AND WON'T PROVIDE THE SERVICE FROM A MORE EXPENSE SERVE PRODUCT. |
| 00:21:31 | BUT WOVE FREE CHOICE. IF YOU WANT TO BUY SOMETHING CHEAP THAT LASTS A WHILE IT A FREE CHOICE. |
| 00:21:41 | HOST: ONE THOUGHT FROM THE "WASHINGTON POST," THE HEADLINE IS CHINESE CLOSE RANKS ON CRITICISM OF U. |
| 00:21:49 | S. THE AMERICANS ARE DISMISSING MILITARY OFFICER'S OUTBURST OF A CHINESE REAR ADMIRAL BUT THIS APPEARS TO BE COMMON IN BEIJING AND THEY HAVE A PICTURE HERE OF AN OFFICER IN THE PEOPLE'S RIB LEGISLATION PARTY AND HE SAYS U. |
| 00:22:04 | S. ARMS DEALS WITH TAIWAN WERE PROOF THE U. |
| 00:22:07 | S. CHINA AN ENEMY. |
| 00:22:08 | I WANT TO READ A LITTLE BIT OF WHAT THIS REAR ADMIRAL SAID. |
| 00:22:14 | EVERYTHING THAT IS GOING RIGHT IN U. |
| 00:22:16 | S. RELATIONS WITH CHINA IS BECAUSE OF CHINA. |
| 00:22:22 | EVERYTHING GOING WRONG IS THE FAULT OF THE U. |
| 00:22:25 | S. HE ACCUSED THE U. |
| 00:22:31 | S. OF BEING A HEGEMON AND SAYING THE BULK OF THE BILE IS WITH TAIWAN HE SAID THEY PROVE THE U. |
| 00:22:39 | S. VIEWS CHINA AS AN ENEMY. |
| 00:22:41 | SO PLUG IN THIS WHOLE MILITARY AND WHOLE MILITARY ASPECT OF ALL OF THIS AND WHAT FOLKS INSIDE THE GOVERNMENT ARE SAYING. |
| 00:23:26 | . THEY DID NOT BUY ANYTHING. |
| 00:23:28 | NOR HAVE THE INTERNAL, DOMESTIC DISPUTES. |
| 00:23:32 | THE LEGISLATURE COULD NOT AGREE ON A SPENDING BILL. |
| 00:23:37 | PRESIDENT BUSH HAD PROPOSED IN HIS FIRST TERM. |
| 00:23:43 | FINALLY, THEY PUT A BILL TOGETHER. |
| 00:23:47 | THIS PACKAGE HAD BEEN DISCUSSED NINE YEARS AGO AND WAS ONE OF THE MOVEMENT GREW. |
| 00:23:59 | IT WAS A MASSIVE SALE. THE CHINESE HAVE RESPONDED VERY QUICKLY. |
| 00:24:02 | THEY WANT TO BRING PRESSURE ON THE UNITED STATES. |
| 00:24:14 | HOST: DO ISSUES LIKE TAIWAN OR ANY OTHER GEOPOLITICAL ISSUE IN THE WORLD, WHETHER IT IS IRAN OR SOMETHING LIKE THAT, DO THEY ALL COME BACK TO THE TRADE ISSUE? |
| 00:24:28 | GUEST: IN U. |
| 00:24:31 | S. DIPLOMACY, THEY TRY TO KEEP THEM SEPARATED. |
| 00:24:33 | WE HAVE SOME OBJECTIONS WITH CHINA PARTICIPATING WITH IRAN. |
| 00:24:42 | HOWEVER, WE WANT TO GET THEIR COOPERATION ON SANCTIONS WITH IRAN, SO WE TRIED TO DO WITH THESE THINGS IN SEPARATE TRACKS. |
| 00:24:55 | THIS COMPARTMENTALIZATION IS NEVER PERFECT, BUT WE HAVE TO LOOK AT THE OVERALL RELATIONSHIP TO SEE HOW THINGS ARE WORKING. |
| 00:25:03 | HOST: NEXT PHONE CALL. |
| 00:25:06 | ROBERT. |
| 00:25:07 | CALLER: I HAVE BEEN INVESTING IN CHINA FOR SOME TIME. |
| 00:25:11 | THE ACCOUNTING STANDARDS IN CHINA, MY CONCERN IS WITH SOME OF THE COMPANY'S, HOW DO I KNOW THAT I AM GETTING WHAT I'M BELIEVE I AM GETTING IN TERMS OF INVESTMENT POTENTIAL? |
| 00:25:24 | DO YOU SEE THE FUTURE OF CHINA ARE MERGING TO SUCH A DEGREE THAT THEY MAY COME SECOND ONLY TO THE U. |
| 00:25:39 | S., IN TERMS OF THE ECONOMIC SITUATION? |
| 00:25:43 | GUEST: ON THE INVESTMENT CONCERN, I THINK MOST AMERICANS LOOKING TO INVEST IN CHINA HAVE TO BUY STOCKS THAT ARE TRADED EITHER IN CHINA OR IN HONG KONG. |
| 00:25:56 | FOR A NUMBER OF REASONS, HONG KONG IS A MORE IMPORTANT MARKET. |
| 00:26:01 | THOSE COMPANIES ARE SUBJECT TO STRICT REGULATORY AND ACCOUNTING STANDARDS, SO MOST AMERICANS DO NOT HAVE THE OPPORTUNITY TO BUY INTO CHINESE COMPANIES NOT BEEN LISTED THROUGH AN EXCHANGE AND SUBJECT TO ACCOUNTING STANDARDS AND TRANSPARENCIES. |
| 00:26:21 | IF YOU HAVE THE CHANCE TO BUY INTO AN UNLISTED COMPANY, THAT WOULD BE UNUSUAL. |
| 00:26:33 | THAT IS WHEN I WOULD WORRY ABOUT ACCOUNTING ISSUES. |
| 00:26:37 | HOST: OVERALL GROWTH? |
| 00:26:40 | GUEST: CHINA HAS HAD A GROWTH OF ROUGHLY 10% FOR THE LAST DECADE OR SO. |
| 00:26:47 | I THINK WE CAN PREDICT THAT THAT WILL COME DOWN. |
| 00:26:50 | IN THE NEXT FEW YEARS, IT WILL PROBABLY CLOSER TO 7, 8%. |
| 00:26:56 | THAT WILL STILL BE VERY RESPECTABLE. |
| 00:27:02 | BUT IT WILL BE DECADES AND DECADES BEFORE, IF EVER, THEY MATCH THE UNITED STATES IN TERMS OF PER-CAPITA OUTPUT. |
| 00:27:15 | THEY ARE A BIG ECONOMY, IN PART, BECAUSE OF THEIR 1 BILLION PEOPLE POPULATION. |
| 00:27:26 | IN AGGREGATE SIZE, CHINA COULD MATCH THE UNITED STATES IN A COUPLE OF DECADES, BUT ON A PER- CAPITA BASIS, WHICH I BELIEVE IS SOMETIMES MORE MEANINGFUL, THEY ARE MUCH FURTHER BEHIND. |
| 00:27:44 | HOST: NEXT PHONE CALL. |
| 00:27:47 | CALLER: WHAT YOU ARE TALKING ABOUT IS A WONDERFUL BUT WE HAVE RUN TRADE DEFICITS WITH CHINA FOR 30 YEARS. |
| 00:27:56 | EVERYONE SAYS THE DEFICIT DOES NOT MATTER, BUT THEY DO. |
| 00:28:00 | THE TRADE DEFICIT HAS COST US 7 MILLION JOBS, LOWER WAGES OF THE JOBS THAT ARE LEFT HERE. |
| 00:28:11 | OUR PEOPLE ARE BEING INUNDATED WITH TAINTED DRUGS, TAINTED FOOD, SHODDY GOODS. |
| 00:28:21 | YOU HEARD IT BEFORE. |
| 00:28:24 | ALSO, OUR INTELLECTUAL RIGHTS ARE BEING ERODED. |
| 00:28:28 | GUEST: I THINK WE HAVE TO START WITH THE BASICS. |
| 00:28:33 | AMERICANS UNDERSAVE AND OVERSCOMSUME. |
| 00:28:41 | AND THAT LEADS TO A DEFICIT. |
| 00:28:47 | -- OVERCONSUME. |
| 00:28:50 | WE CAN OVERCOME THIS IF WE SAVED MORE. |
| 00:28:54 | YOU CANNOT HAVE IT BOTH WAYS -- HAVE A CONSUMPTION-DRIVEN SOCIETY WHERE PEOPLE JUST USE CREDIT TO PAY OFF THEIR INCOME -- AND MANAGE THE DEFICIT. |
| 00:29:08 | FOR THE MOST PART, WE HAVE ONLY OURSELVES TO BLAME. |
| 00:29:13 | I AGREE WITH SOME OF THE OTHER COMMENTS THAT CHINA HAS NOT DONE ENOUGH TO PROTECT OUR INTELLECTUAL RIGHTS, AND THAT SOME OF THEIR PRODUCTS ARE SHODDY, BUT IN OUR COUNTRY, WE DO NOT PUT MUCH EFFORT INTO INSPECTING GOODS COMING INTO THE COUNTRY. |
| 00:29:33 | WE HAVE ALMOST NO INSPECTORS AT THE BORDER. |
| 00:29:36 | THE AGENCY IS RESPONSIBLE FOR THIS ARE CHRONICALLY UNDERFUNDED. |
| 00:29:42 | IF WE WON HIGH STANDARDS, WE ARE GOING TO HAVE TO ENFORCE THEM. |
| 00:29:49 | HOST: HOT SPRINGS, ARKANSAS. |
| 00:29:53 | GO AHEAD. CALLER: THAT MAN WHO SAID HE INVESTED IN CHINA AND LIVES IN THE UNITED STATES, I THINK HE IS WRONG. |
| 00:30:03 | HE NEEDS TO INVEST IN THE UNITED STATES. |
| 00:30:09 | WHY IS IT THAT CHINESE, THE VIETNAMESE COME ANYBODY FROM ANOTHER COUNTRY CAN COME HERE, BUY A HOUSE, SET UP BUSINESS, AND IF THEY GO OUT OF BUSINESS, WE ARE THE ONES THAT PAY FOR IT. |
| 00:30:32 | HOST: WE ARE GOING TO LET THOSE PHILIP IS ONLINE. |
| 00:30:40 | -- IS ON THE LINE. |
| 00:30:47 | CALLER: I HAD A QUESTION ABOUT MINISTER FORTH AND HIS POLICY ON FOREIGN AID. |
| 00:30:57 | HOW MANY OF AVERAGE JOBS HAVE GONE ON TO CHINA VIA FOREIGN AID MONEY? |
| 00:31:03 | GUEST: WE DO NOT GIVE ANY FOREIGN AID TO CHINA. |
| 00:31:07 | I DO NOT THINK THERE IS ANY CONNECTION BETWEEN JOBS GOING TO CHINA AND FOREIGN AID. |
| 00:31:13 | THERE ARE NOT A RECIPIENT OF FOREIGN AID FROM THE U. |
| 00:31:17 | S. GOVERNMENT, NEVER HAVE BEEN. |
| 00:31:21 | HOST: BARBARA, SEATTLE. |
| 00:31:25 | GO AHEAD. CALLER: I WONDER -- I AM CONCERNED ABOUT POWERED DRUMS GOING TO CHINA, BUT I AM ALSO REJECT ABOUT OUR JOB S -- OUR JOBS GOING TO CHINA, BUT I AM ALSO CONCERNED ABOUT THE TAXES. |
| 00:31:49 | YOUR GUEST NEED TO GET THEM INTO THE COMMUNITY AND TALK TO PEOPLE BECAUSE HE IS TALKING FROM A SMALL WINDOW OF HIS OWN INTELLIGENCE. |
| 00:32:04 | GUEST: I SYMPATHIZE WITH WHAT I SEE AS SOME OF THE UNDERLYING POINTS FROM THE CALLER. |
| 00:32:17 | WE STILL HAVE THE STRONGEST ECONOMY OF ANY OTHER COUNTRY, HIGHEST LIVING STANDARDS, AND I DO NOT THINK ANYBODY SHOULD TELL US SHORT. |
| 00:32:29 | HOST: NEXT PHONE CALL. |
| 00:32:32 | DAN ON THE DEMOCRATS LINE. |
| 00:32:38 | CALLER: I HAD SOME COMMENTS ABOUT THE ECONOMY. |
| 00:32:42 | WE HAVE ENOUGH NATURAL GAS TAPPED AND CAPPED IN THE COUNTRY TO CONVERT EVERY VEHICLE TO NATURAL GAS, GET AWAY FROM FOREIGN OIL, AND EMPLOY 9 MILLION PEOPLE IMMEDIATELY. |
| 00:33:00 | I JUST WANTED TO KNOW WHY WE ARE NOT ATTEMPTING TO DO SOMETHING LIKE THAT? |
| 00:33:07 | HOST: CONNECT THAT TO CHINA, IF YOU CAN, AT ALL. |
| 00:33:13 | CALLER: THEY ARE PICKING UP THEIR PRODUCTION. |
| 00:33:16 | ALL WE ARE TRYING TO DO IS GET OUR FEET BACK ON THE GROUND, AS FAR AS NATURAL GAS. |
| 00:33:27 | HOST: THANK YOU. |
| 00:33:33 | IN ENERGY CONNECTION. CALLER: BOTH COUNTRIES ARE SIMILAR IN A COUPLE OF RESPECTS. |
| 00:33:37 | BOTH HAVE LARGE NATURAL GAS RESERVES. |
| 00:33:41 | BOTH OF OUR COUNTRIES, OVER TIME, CERTAINLY HAVE THE POTENTIAL TO REDUCE OUR DEPENDENCE ON IMPORTED OIL BY DEVELOPING DOMESTIC RESOURCES. |
| 00:33:53 | THAT WOULD CERTAINLY IMPROVE BOTH OF OUR ECONOMIES. |
| 00:33:57 | HOST: CHARLES, REPUBLICAN, GOOD MORNING. |
| 00:34:02 | CALLER: THANK YOU FOR HAVING ME. |
| 00:34:05 | ABOUT NATURAL GAS, I WOULD ALSO LIKE TO POINT OUT IT HAS HALF A CARBON FOOTPRINT OF OIL. |
| 00:34:14 | I HAVE A REAL ECONOMICS QUESTION FOR YOU. |
| 00:34:19 | IF THE UNITED STATES TIED OUR CORPORATE TAX RATE TO THE TAX RATE OF OTHER COUNTRIES -- WHICH ARE NOW ABOUT 40% -- AND THEN PURSUED OTHER AREAS WITH THE POLICIES LIKE WE USED WHEN MAINE GOT HELP OF THE GREAT DEPRESSION -- WHEN WE GOT OUT OF THE GREAT DEPRESSION, HOW WOULD A COUNTRY LIKE CHINA RESPOND? |
| 00:34:53 | WE HAVE TO AIRFARE WARS IN THE AIRLINE INDUSTRY. |
| 00:35:03 | WHEN IT COMES TO CHINA TO FOLLOW A SIMILAR PATH? |
| 00:35:08 | CALLER: WE'D -- GUEST: WE DO HAVE A TAX STRUCTURE THAT IS NOT AS ADVANTAGEOUS TO COMPANIES. |
| 00:35:18 | WE MAY BE MOVING TO A VALUE ADDED TAX. |
| 00:35:22 | THAT CAN BE REBATED WHEN PRODUCTS ARE EXPORTED, AS HAPPENED EVERYWHERE ELSE, AND WOULD MAKE THE U. |
| 00:35:31 | S. MORE COMPETITIVE IN THE GLOBAL MARKETPLACE. |
| 00:35:34 | I THINK IT WOULD BE AN IMPROVEMENT FOR OUR OVERALL ECONOMIC WELFARE. |
| 00:35:39 | HOST: NICHOLAS LARDY, THANK YOU FOR YOUR TIME AN UPDATE ON U. |
| 00:35:46 | S. TRADE. WE WILL BE SPEAKING ABOUT SOME DOCUMENTS RELEASED REGARDING SUPREME COURT NOMINEE ELENA KAGAN. |
| 00:35:53 | WE WILL LEARN MORE ABOUT HER OPINIONS ON VARIOUS ISSUES. |
| 00:35:57 | OUR GUEST IS FROM THE ASSOCIATED PRESS. |
| 00:36:00 | FIRST, MORE NEWS. |
| 00:36:04 | >> IT IS THE BUSIEST DAY OF THE YEAR SO FAR FOR CONGRESSIONAL AND GUBERNATORIAL ELECTIONS WITH 12 STATES HOLDING PRIMARIES OR RUNOFFS TODAY. |
| 00:36:14 | IN ARKANSAS, BLANCHE LINCOLN IS IN A RUNOFF AGAINST THE LIEUTENANT GOVERNOR. |
| 00:36:20 | CALIFORNIA HAS A REPUBLICAN PRIMARY IN THE RACE TO SUCCEED TERM-LIMITED GOV. |
| 00:36:26 | ARNOLD SCHWARZENEGGER. |
| 00:36:32 | PEOPLE WHO BUY PREPAID CELL PHONES COULD FIND THEMSELVES UNDER INCREASED SCRUTINY. |
| 00:36:38 | NEW YORK DEMOCRATIC SENATOR CHARLES SCHUMER AND JON CORZINE HAVE INTRODUCED LEGISLATION REQUIRING CONSUMERS TO PRODUCE IDENTIFICATION BEFORE BUYING THESE BONES, WHICH HAVE BEEN USED BY TERRORISTS BECAUSE THEY ARE HARD TO TRACK. |
| 00:36:55 | THE BILL HAS BIPARTISAN SUPPORT, BUT CIVIL LIBERTIES GROUPS ARE RAISING PRIVACY CONCERNS. |
| 00:37:01 | IN AN INTERVIEW WITH NBC'S "THE TODAY SHOW" THE PRESIDENT SAID, TONY HAYWARD WOULD NOT BE WORKING FOR ME. |
| 00:37:16 | ALSO IN THE INTERVIEW, HE SAID HE CONSIDERS VETERAN WHITE HOUSE CORRESPONDENT'S HELEN THOMAS' COMMENTS CONTROVERSIAL, BUT WAS SAD TO SEE HER CAREER AND. |
| 00:37:33 | SHE RETIRED ON MONDAY AS A COLUMNIST FOR HEARST NEWS SERVICE. |
| 00:37:38 | FINALLY, AN ADMINISTRATOR AT A NEW JERSEY HIGH SCHOOL SAID ONE OF THE TWO TERRORISM SUSPECTS ARRESTED OVER THE WEEKEND WAS CONSIDERED SO DANGEROUS AS A STUDENT THAT HE WAS CAUGHT OUTSIDE OF THE CLASSROOM WITH A SECURITY GUARD PRESENT. |
| 00:37:55 | THE ADMINISTRATOR DID NOT ELABORATE. |
| 00:37:59 | THE TWO TRIED TO FLY ABOVE KENNEDY AIRPORT ON SUNDAY, ALLEGEDLY TO GET TERRORISM TRAINING IN SOMALIA. |
| 00:38:11 | >> CONGRESSIONAL HEARINGS ARE BACK IN FULL SWING TODAY ON CAPITOL HILL. |
| 00:38:16 | THIS MORNING, THE SENATE JUDICIARY COMMITTEE HOLDS A HEARING ON THE 2008 |
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