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tv   This Week With Christiane Amanpour  ABC  August 15, 2010 10:00am-11:00am EDT

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on motorcycle, rv, and camper insurance. good morning i'm christiane amanpour, and the top of the news this week, trouble to the road to recovery. jobless claims are up. >> the numbers dismal for employment. >> and wall street gets nervous. >> how worried should we be, and what will bring confidence back? this morning, top voices on the economy. former new jersey governor and wall street ceo jon corzine. republican senator bob corker of the senate banking committee. obama economic adviser, laura tyson and chief economist at the u.s. chamber of commerce, martin regalia.
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then, washed away. 20 million pakistanis in danger, as the worst flooding in memory leaves huge areas of the country under water. it's a race against time to bring relief. this week, has the latest from inside the crisis. with u.s. efforts to deliver aid. plus, this week, the president weighs in, defending the mosque islamic center near ground zero. >> muslims have the right to practice their religion, as everyone else in this country. >> or does he? >> i will not comment on the wisdom of making a decision to put a mosque there. >> that, and all of the week's news and politics on our "roundtable" with cokie roberts, political strategist matthew dowd. david ignition just of the washington stroke and chrystia freeland. and the "sunday funnies."
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>> unemployment among teenagers in an all-time high is not just here, back in china, it's so bad. kids as old as 7 are having to move back in with their parents. >> from all across our world to the heart of our nation's capital. abc "this week" with christiane amanpour, starts now. >> good morning. this was supposed to be the summer of recovery. but the effects of the so-called great recession continue to cloud this nation, and much of the world. the number of u.s. workers seeking unemployment benefits rose unexpectedly to 484,000. it's the worst in almost six months. and in the housing sector, banks foreclosed on more than $90,000 properties in july, the second highest total since the crisis began and these pictures speak to the desperation this week in atlanta. 30,000 people waited for hours in sweltering heat to apply for 655 available spots for government subsidized housing. and i'm joined now by four top
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voices on the economy. from berkeley, california, member of the president's economic recovery advisory board, laura tyson. from chattanooga, tennessee, republican senator bob corker of the banking committee. new york, former new jersey governor, jon corzine and joining us in washington, chief economist, martin regalia. for the u.s. chamber of commerce. thank you all for joining me. you've heard the figure, you've read about the figure, you can almost feel the concern and worry amongst the american people. and i want to read you something that was written about this joblessness about the younger generation in the atlantic recently, look what was written about unemployment. there is unemployment, a brief and relatively routine transitional state, the results of the rise and fall of companies in any economy, and there is unemployment, chronic or consuming. the former is a necessary lubricant in any engine of economic growth. the latter is a pestilence that
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slowly eat as way at people, families and if it spreads widely enough, the fabric of society. in deed, history suggests that this is perhaps society's most noxious ill. let me turn to you right now. martin regalia. do you agree with that, and do you think that's what this country is in right now? >> i agree with it. i think that's what we're seeing right now. an economy that is growing, growing in a very lackluster way, it's not generating enough demand and therefore not generating enough jobs. on top of that, the last three or four recessions have given rise to longer terms of unemployment. more retooling is necessary to bring the displaced workers back into the work force, and that retooling has taken a lot longer. >> let me turn to you, laura tyson, an adviser to the president right now. a recent wall street journal poll of 53 economists said they don't see the employment rate coming down below 9%, at least until june 2011.
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what can be done about this? >> well, i think that we have to do a number of things, i think we have to worry, first of all, about taking care of the people who are unemployed. that's why i really have supported the extension of unemployment benefits and extension of benefits to help people maintain their health insurance, if they lose their job. very, very important. you have to deal with reality of people, long-term unemployed. 7 million people, long-term unemployed. secondly, we have to continue to do everything we can to stimulate demand in the economy. let me give you two example, we do have a payroll tax credit, that has been offered to companies, that bring on new unemployed workers into the work force. i think we should continue that. i think we should continue to look at major spending on infrastructure products. good news about the stimulus, the infrastructure projects
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haven't come on board yet. they are coming on board now. they have high job per dollar spent outcome. finally, we have to learn about the longer run problem. i want to point out one thing for this discussion, the unemployment problem is primarily a problem for people who have a high school -- who don't have a high school education, or just have a high school education. unemployment for those with college educations is now 4.5%. unemployment for those with more than a college education, below 4%. we have a problem of education in this country, and we have to educate more of our young people fully through college education. let's take this as an opportunity to do that. >> let me ask senator corker on the banking committee. you've spoken a lot about this. you are in chattanooga right now. you've told me you've been out in the rural area, where there is really nothing for people out there beyond the current
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unemployment rate, there's also under employment. and it's standing at about 16.5%, the total problem of people who either don't have a job, or who don't have enough of a job to make ends meet. how is it -- is it impacting the people in the rural area, and do you think that this really goes to the heart of the american dream that is being deferred? >> you know, as we speak, as a city i'm sitting in has been named one of the -- is named the top economic producer over the next decade, it's because of investment in the work force, the vision, the fact we've really held on to trying to produce things. as you go through the rural area with the lack of infrastructure that exist and most rural areas around our country, there's less opportunity for that. it creates challenges that don't exist in some of the major metropolitan areas. i think we're seeing that more and more across the country. at the same time. much of what we've done over the
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last year is create an air of predictability. what's happening, businesses are sitting on the sideline.upredic. what's happening, businesses are sitting on the sidelinnpredicta. what's happening, businesses are sitting on the sideline. they don't know what the lay of the land is. the best thing we can do in washington at this time is just calm down and quit changing, sweeping, making sweeping changes. i sat down with the business this week, i give you an example, and they're looking at the health care bill, and trying to decide, should they keep people under 30 hours? smaller businesses saying, should we stay under 25. so i think that much of what we've done over the last year has actually been counter productive. again, the best thing we can do is just calm down to really let people's balance sheets sort of get back to where they need to be. that will stimulate demand over time as families and household across our country get their balance sheets in order. >> we'll come back to that.
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you know the financial times said congress needs to, quote, get a grip. i'm going to ask but that, right after i go to governor corzine and ask him about what is going to stimulate the kind of consumer confidence that you were just talking about, senator corker. there are figure, governor corzine that suggest nonfinancial companies have sock away something like $1.84 trillion in cash and other assets. but they're not spending them. not hiring, not building plants and other infrastructure. why not? don't they have a responsibility to do so in this situation? >> there is a gap of confidence in the economy that comes from the shock that we had of 2008 and 2009. $17 trillion worth of lost economic value, in that time frame. makes companies, and people, very, very concerned. even though we've had a major recovery in some of that valuation loss. it makes people nervous. we also, and i think your quote that you started with, actually
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frames what is the real problem. we have both a recession problem, that was the result of the great financial crisis, but we also have this great transformation that's taking place across the globe. a lot of other countries very competitive with the united states today, and we need to invest in our education system, and our infrastructure system, and our efforts to expand our exports. if we're going to be competitive as we go forward -- >> let me ask about that, because when it comes to exports in manufacturing, we read quite a lot that america has been losing its competitive edge to places like china and other such. laura, what do youhink the united states can do to regenerate a competitive export in manufacturing? >> well, i think the key word, jon raised is investment. and i think it is absolutely essential. we get caught up in discussions
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of deficit reduction, or stimulus, let's forget those issues for a minute, and just think about investment and here it is investment in a number of things. i've heard senator corker talk about the importance of infrastructure. for years, going into the great recession, it has been noted that the u.s. has been investing inadequately in its infrastructure, maybe to the tune of $200 million a year of economic justifiable infrastructure investmentes we're not doing. let me turn to investments in education. it is the case. we used to be number one in the world in college graduation rates. we are now number 14, number 15. we are leading the world in high school dropout rates. and as i said, the unemployment problem is most severe in dropouts. so invest in people, invest in infrastructure, invest in knowledge. we basically are trying to get research and development
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spending, up to 3% so we can again be leaders in the world in that. invest, invest, invest is really what we must do. public, private partnerships, without $100 billion of the stimulus package is leveraged to private spending, a dollar spent by the public sector on infrastructure can bring $3 of private spending. >> martin regalia, why isn't the private sector investing, investing, investing? >> our tax laws and other regulatory structure in washington don't foster that. we tax savings multiple times. we don't allow full cost recovery, don't allow expensing on investment. we can't pass an r&d credit extension that's been delayed for over a year through a congress that's fighting with each other. and when you don't have the kind of laws, and kind of tax structure that facilitate and encourage investment, you get a lot less of it.
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we tax multi national corporations on the overseas profit. we're the only major trading country in the oecd that does that, that doesn't have a territorial tax system. what do we do? we tell our people go out and export, then tell them, we're going tax you more than every person you have to compete with in the global economy. >> senator corker, what about that? we were talking about congress, just heard mr. regalia talking about congress and fighting with each other, not getting these things done. what do you think can be done? you said chill out, calm down perhaps until after the elections. what can be done to fix this, you think, in a bipartisan way? >> well, i think one of the things we need to do, i heard laura talk about investment, as a country, we need to decide how much of the federal government spends on average, as been 20.3% over the last 50 years. i heard the other day 21%.
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but i think much of our debate goes to little issues that divide our country. that needs to be the first issue. how much the federal government take in from the private sector. once that decision is made, i might say 18%. erskine may say 21. maybe the right number is someplace in between. after that decision is made, what is the appropriate tax policy to generate economic growth. i think comments have been made about the lack -- the way we tax, we do tax investment. we encourage people to go into debt. i think the tax policy in this country certainly needs to be looked at, and needs to be looked at in a way to encourage investment and encourage growth. obviously if the gross domestic product grows and the issue diminishes, the things that laura is talking about are able to be done. we need to move to that big picture first. look at what is appropriate. most people in america would rather determine what to do with their own money, versus let 535 people decide for them, but the
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fact is that we get mired down in these little issues that divide us, when really we ought to focus as a country on this bigger issue first. >> let me go to you, governor corzine, you lost an election, re-election in your state when you were governor, when you took office, unemployment was 4.7, when you left, it was 9.9. is that why you lost? and you talked about how it was painful but in 20/20 hindsight, what could you have learn from that, do you think? >> i think any time the economy is weak, incumbents are going to have challenging re-election on most instances, and that certainly was the case, when you have unemployment rise that much. we were in the midst of the financial meltdown, and the aftershocks of that, in 2009. i think we'll seek some of that this fall. but i want to go back to, we
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have been successful in this country, in driving investment with higher tax rates than what we have today. i think the issue before setting those, and making sure that the expiring tax cuts that are actually on the table at the end of this year, that needs to get addressed. and it needs to get addressed relatively quickly, because that does create uncertainty, while that is yet to be resolved. i would hope that the congress, and the president would either say we're going to get to a conclusion about the long term, or we're going to extend this for a year, and we'll come back and debate this at another point in time. that's a major uncertainty overhanging the economy. in the long run, though, we overemphasize taxes, relative to the general confidence and well being of our middle class. that comes together. and you'll see it in the elections. if you have that high-end unemployment rate extending over
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a period of time. people are going to be mighty unhappy and they'll take it out on both democrats and republicans. >> let me quickly go to what you mentioned about being competitive with the rest of the world. the big story out of europe is that germany has shown stronger than expected growth over the last quarter. laura, you were saying something about how germany had taught and trained its work portion to compete in these situations. right, germany has had a long-term commitment to manufacturing. and it has a very strong manufacturing base. a much larger share of economy than we do. a major part of that is vocational training and very serious ongoing training for manufacturing workers in germany. and often times a german firm with german workers will retrain and use technology at home rather than offshore those jobs.
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and i want to point out also that germany manages to do this with a much higher tax rate than we do. i think there should be corporate tax reform. i agree with a lot of what senator corker and martin regalia have said. but we need investment. i would say, in thinking about the share of government and gdp, something the senator mentioned, we need to distinguish between investment spending by the government, whether federal, state or local. and other spending. a dollar spent for infrastructure is different than a dollar spent for current operations. >> we have about 30 seconds left. i want to know, do you think, martin regalia and senator corker, can confidence be injected into the american consumer any time soon? >> yeah, i think it can. one thing we have to address right away is what is going to happen at the end of the year with the 2001 and 2003 tax cuts. there ought to be an extension, at least temporary extension. that would help to ease both the consumers fears and business fears. >> senator corker, 15 seconds. >> yeah.
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i agree with that. let's leave tax policy as it is. martin vande had a great piece today in the new yorktime, saying the same. let's not fiddle anymore. let's leave things predictable and deal with this down the road. >> we'll see how that plays out ahead of the elections and afterwards. thank you all for joining us on this important topic. >> thank you. >> and we turn now to pakistan, a major u.s. ally where a major humanitarian crisis is in its third week. pakistan's government said the worst flooding in that nation's chris tri left 20 million people homeless. u.s. military helicopters are providing a life line for many there. but the u.n. says 6 million people are in need of food, water and shelter. abc's jim sciutto flew into pam stan's swat valley with the relief mission. >> reporter: from the air the scale of the disaster is alarming.
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rivers swollen miles beyond their banks, behind them is a trail of destruction. >> i've never seen such a large area receive as much damage as i've seen in swath. >> flying into the hard-hit swat veal aboard u.s. army relief helicopters, we saw every single bridge destroyed, and on the ground, villages now dependent on aid from the air. in bahrain, population 40,000. now once waterfront hotels now in the water. it has no power, no clean water and no roads in or out. >> so it's cut on both sides? >> it's gone on both sides. >> this is an island? >> it is an island. >> reporter: american helicopters are bringing supplies from places like this to villages completely caught off. we're seeing rice and flour and other supplies going in, the hospitals are, today, their only lifeline. food, much from the u.s. in, refugees out. for the flight crews diverted
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from relief in combat in afghanistan, it was a dramatic shift. >> i spoke to all of the troops about turning that switch off. first time they looked at those children needing help. i was no longer concerned. >> reporter: u.s. an pakistani relief teams fighting against the clock. this weekend, the first confirmed cases of cholara, a potential deadly disease as a result of no clean drinking water. the aftermath is a way the government failed them, applauding response, a state budget dependent on foreign loan, shoddy infrastructure, seeking to take advantage, the taliban is delivering help where the government is no, particularly in swat which saw the end of anti-military defensive just weeks ago. for the u.s., however, one sign of hope. america is deeply unpopular here, but the relief effort is winning hearts and minds. among them, the mayor of bahrain, who told me the u.s. is outdoing pakistan's muslim allies.
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>> islamic countries, air doctor after america. >> does that surprise you? >> that surprised me. >> a good surprise? >> yes. >> reporter: the first priority of the american relief effort is help those in need, but u.s. said it is intended to improve america's dismal image here. 68% of pakistanis view the u.s. negatively. despite the american helicopters, a very tangible form of outreach for christiane, a lot of food going in, seen them labeled prominently with american flags. >> jim, indeed. let's talk more about that. you mentioned the disapproval rate because of the drone strikes, because of going after terrorists that killed quite a lot of civilians. how are you noticing that in these area, americans actually being received warmly because of this aid? >> we've seen them getting hugged, getting kisses literally on the ground from these troops
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and thanks, gratitude interest this aid that they are in desperate need of. that said, the pakistani media is not covering the relief effort closely. they are focusing not surpriselily on the pakistani effort. the sign of sensitivity, being associated with the u.s., the u.s. will not identify local pakistanis that it's giving aid to. so it is not opening up the risk that they are targeted for terror attacks. >> jim, very quickly, the pakistani troop, are they being diverted from fighting the militants? >> there are 50,000 pakistani troops involved. in this relief effort. pakistani officials say none of them have been diverted from the border or counter terror operations. u.s. officials say they believe those officials and counter terror operations with the pakistanis under way as we speak. >> jim, thanks so much from islamabad. in response to my questions on the disaster, you can seek comments from u.s. special representative from afghanistan
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and pakistan richard holbrooke on our website at abcnews.com/thisweek. coming up next, the president's decision to weigh in on the controversial islamic center near ground zero. on our "roundtable" with cokie roberts, matthew dowd, david ignition just and chrystia freeland. this week, with christiane amanpour, proud do you by -- a different story? eree of one financial company that grew stronger through the crisis. when some lost their way, this company led the way. by protecting clients and turning uncertainty into confidence. what if that story were true? it is. ♪ it is. for constipation relief... nothing works etter than miralax. it's he one. the one recommended by more doctors. only miralax is clincally proven to relieve constipation ith no harsh side effects.
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"roundtable" and "sunday funnies."
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ho how are you feeling by
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building a mosque, in-your-face mosque. >> it's like spraying a swastika over a jewish memorial. >> we would be untrue to the best part of ourselves, and who we are as new yorkers and americans if we said no to a mosque in lower manhattan. >> this is such a sensitive issue. this is the wrong place to have a mosque such as this. >> i believe the muslims have a right to practice their religion as anyone else. >> that includes the right to build in a place of worship on private property in lower manhattan in accordance with local laws. and ordinances. >> the president waded into the controversy over the islamic center near ground zero. one of the topics that we'll be discussing this morning in our "roundtable" with political strategist matthew dowd, chrystia freeland. david ignition just of "the washington post" and our own cokie roberts. george will is still on vacation. thank you for joining us. >> you did see the speech friday night about the iftar dinner at
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the white house. why do you think he said that then? >> he said that, because he believes that. the real question, he doesn't say the next day, but something more. >> do you want to talk about that? >> yes, we do. we are going to put up poll numbers and just show everybody what the poll numbers on this issue. one poll said, when they ask about what people think about the plan to build the mosque, that only 30% say it's appropriate, and 64% say it's wrong. but they say do the muslim group have the right to build the mosque. 61% said yes, and 34% said no. so, i guess, is that, you think, what caused the backtracking, although those poll numbers were out before the speech on friday night? listen to what the president said in the gulf in florida on saturday, yesterday. >> i was not commenting, and i will not comment on the wisdom of making a decision. to put a mosque there. i was commenting very specifically on the right that
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people have, that dates back to our founding, that's what our country is about. >> that's not what he was doing, if you listen to this. play the first part of what he said. they said they have a right to build on private property, all of that. and granted, he didn't say it's wise to build on private property, but it was very clearly an endorsement and then to walk back from it is so silly. he's already taken all of the flack for having said it. >> i think they've figured out it's a real political problem. i think they had a tenure at the beginning of this, how it was going to come across, or they mishandled it from totally from the beginning. if they understood. two-thirds say they have a right. two-thirds say don't do it. he would give a speech going to those points instead of one day saying they have a right and next day saying i didn't think it was the right thing to do.
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i think this is a big problem. it feeds a broader narratively about him, which is, it's my way or the highway. in many ways it reminds me of bush. he said i don't care what the american public is on this, i'm going say what is the right thing to do. he's done it in arizona, he's done it on health care. >> i have a problem. i thought the speech friday night was a model of political courage, in the sense he said what he believed knowing that it was going to cost him. the white house stayed out of this issue knowing it's political poison. i think the president spoke to it fairly directly. this is america, people have a right to build on property they own, even if it's going to be a mosque near ground zero. i was sort of sorry, he was trying to walk it back in the nuance comments yesterday. >> i totally agree with dave. i think, matt, the point of my way or the highway. another way of talking about that is leadership. conviction, having your belief, and not governing according to poll. i think if you ask most americans what kind of leader
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you want, you ask people in the world what kind of leader you want, you want someone who governs according to convict. i think this touches on the economic pam you had earlier. it touch on in two important ways. the point about private property is essential. i think to have the president, we had similar comments coming mayor bloomberg, coming out and saying, actually, we believe that the rights of private property are so strong, we are not going to change them because -- >> where does this go from now? where does it actually go? is this a line drawn under it? >> no, no, i think we continue -- >> does it get built? >> that's an issue that i certainly can't answer. my guess is eventually it does get built, and it becomes no problem. but the political issue will continue, because even though the president's marks friday night started a firestorm, i
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think the backtracking is even worse. because, you know, you can make a case that what he said friday night is just a matter of fact. it is an american right. but to keep -- to keep saying, well, now, i'm not sure about this, and what tomorrow is likely -- >> i just want to ask you this. it does go to the heart of what he has been doing since the beginning of his presidency, reaching out not just to the muslim world but muslims in general. he made a very important first interview where he said the united states could not afford to have yet another generation of muslims, viewing it as the enemy. so do you think it's wise to have this huge hubbub over it, or it should just go forward? >> well, he would -- the president would like this to sort of go away and not have a huge hubbub about this. the problem is two-thirds of the country are posting him on this. that's the problem. i think he totally -- he states what's in the constitution, they have a right to build this.
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that's not the point in this. you have a right to free speech, doesn't mean you can go -- >> free speech is a point. >> why is that the point? >> the point is, is that you have to build consensus on this. tolerance goes two ways, tolerance for somebody to build what they want. but tolerance is to recognize what that symbolically says to a whole bunch of people in this country. and if you don't recognize that, you're going to have this find of furor. do you think it should go ahead? >> no, i think he should call together the people. there are many people in the community that are worried about this happening. i think he or somebody should call together something, put this on hold for a little while. bring together consensus what people should do. right now, it's white hot. >> what do do you? it is white hot. you're absolutely right, right now. what do you do when the absolute owner, people who want to build this, are in the moderate stream of muslims, did go to the white
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house. you were there when they did, when this gentleman did, condemned 9/11, condemned extremism, condemned terrorism and now they're faced with this situation. >> there are way, always, of making these situations just less hot. and it is a question of suggesting other place, providing other places, those kinds of things can always be worked out. >> but talk about the rest of the world. i think that actually, the president's comment, the comments by mike bloomberg are really an important message to the muslim world. we're talking about pakistan later on. for these people -- for american leaders to say in the face of some political pressure from their voters to say we believe sufficiently strongly in diversity, in private property rights for our muslim citizens, i think that's a great -- >> i think that's one of our strongest suits. >> coming back from it is the problem. >> as the world looks at us, if they see the united states, even in an issue that hurts, and
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ground zero hurts, even on that issue, we still stand up for the freedom of people to dispose of their property as they want. that does count. i travel, you travel, christiane, we hear comments about that america a lot. i think you shouldn't minimize the benefits of saying to moderate muslim, here you are. this upsets a lot of americans. >> it's easy to be tolerant, but the people you are tolerant of -- >> there's two freedoms -- there's the freedom to build on private property and freedom for people to protest and say this is not what we want. i think the president obviously has to lead in this country and lead in the world. the problem is he is speaking from a position of weakness, not a position of strength. if he does not have consensus -- >> why do you say that? >> he's in total position. his approval numbers in the low 40s. he's perceived to not handle all of the major issues. the vast majority of this country question his leadership. for him to go on an issue that's
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white hot. and then say i'm going to say it, while two-thirds of the country is in another place is a real problem for him. >> clearly the consensus appears it should have been arranged, debated, done in a slightly better way between those who wanted to build it and community, whether they are jewish members of the community, christians or other muslims, one of the tragedies seems to me that the actual imam was talking, and his wife, to the people who put out the jewish community center in new york and talking about how to have something similar like that. and it seems to have all gone awry. let's move on to politics, because this week was also -- that was leading into it, was primary week in many states. some have said, a group of, sort of political favorites said, odd ball character is coming out of right field. what will you believe or agree with that or not, do you think is the effect of those who won
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in some area, the tea party candidate, those who supported? >> it's interesting, abc has done over the last couple months have done a great job gauging the frustration as it exists. as high as it was in 1992 and 2008. not just limited to republicans and democrats. i think these primaries have shown there are some places that there's anger that's related to frustration, then other places which is majority which is related to frustration. i think the republican party right now, is the comparison, between a bonfire there and campfire in the democratic primary. you can handle the campfire, but the bonfire which helped the tea party people and what's gone on across this, headed into november, i think this is perilous for both party, actually. perilous for the republicans if they become the tea party folks which out much the main stream have a hart time winning november elections.
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but also for the democrats if they ignore this level of frustration and don't deal with it. >> but they've had plenty of time to learn about it and they've had town meetings and heard about it and all of that. they're not going to be taken by surprise, but they think that they can just go back to the old playbook, so they are pulling out social security, and they are running against george bush, and they're doing things that have worked for them in the past, that i'm not at all sure have worked for them this year. that could be a real problem. they are not understanding the level -- >> the democrats found this year, this president, like the party of the establishment, and we have a political firestorm out in the country. people are really angry, they are angry at washington, angry about the economy. the tea party is an expression of that, what robert gibbs, the press secretary is calling the professional left is another example of that. people are angry at the main stream views of the president office espousing. that's a real problem for them. they don't have the energy, they are not tapping into this energy
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source as we head to the elections. >> doesn't it come down to the economy? i don't want to be too simplistic. with unemployment at 10%. i thought the comments jon corzine made were right on this. is a double whammy. this is a recession falls on a financial crisis. and this is also the final act of america's structural adjustment to gl and technology resolution. that's a really big deal. i think the real problem is not -- we're going to be focused a lot on messaging and cosmetics ahead of the mid term. the real question, can an american political party or political movement come up with a powerful economic plan, and one that is maybe really different? and we're seeing that happen in other countries. look at britain, david cameron story is one with a really radical plan. >> they have one. not that they don't have a plan. it hasn't worked. >> they are going to win. huge amount of seats in the house, huge amount of seats in the senate. they win a bunch of governors
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races. to me the economy is the number one issue. it's representative of a bigger issue out there. the problem is, people out there do not think washington is listening to them. they don't think they're paying attention to what is going on in america. the reason why the economy has so much anger in it. people don't think they are empathetic with where they are in their life. >> but they are also, you know, the voters very ambivalent themselves, because on the one hand, fury -- they're furious with washington for being furious and for everybody fighting with each other. and why doesn't anything work, yet they're furious, and feed into that partisanship tremendously, so there's no right answer for the politicians as they face the voters. >> also the primary this week, white house and democrats are saying it's not such a bad bag. why grew some comfort from some result there's.
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>> because they were able to renominate michael bennett in colorado. that made them feel good because they had backed him. newt gingrich backed sarah palin. what does that stay about the star of the tea party movement? >> endorsements to me are questionable anyway. because voters automatically make the decision. sarah palin on the republican side has the most energy and emotion and passion than any other candidate. she can still walk into a city and get 3,000, 5,000 people. no one else can do that. she have that emotionally. she can charge that and ultimately it's about here. i think the interesting thing on the results there is this big wave coming into washington. democrats have a sea wall. what happens, republicans nominated people that may not be able to win. basically the republicans are putting bricks on the seawall, and building higher. they have a less chance of winning because of their election because of who they
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nominated in some places. >> their biggest problem, i would suspect, if they did win, suppose the republicans did win control of the house and senate, what would their program be? they would be a much easier mark for the democrat, heading toward the 2012 presidential election. you almost think it would be better for obama if they won -- >> start to triangulate. say we have a brilliant plan. >> they can do one of two things which would be beneficial. compromise and show build bridges or say there's the problem, they're the problem. the fear the white house has, he'll get the worst possible result which is a small margin in the house, small margin in the senate. he can't get anything done but owns all of the leverage. >> now that we settled that one -- >> let's move right out of the country to pakistan briefly, because we did talk about it with jim sciutto. it's been likened to their katrina. the u.s. is doing the right thing sending relief, right? >> absolutely. >> yeah, sure. >> politically, economically. >> humanitarian --
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>> humanitarian, of course, exactly. what do you think, though, when you look at this, here's the fight, here's pakistan, nuclear armed, here's pakistan having done the right thing, to an extent, having sent its army off to the militants. all of that, all of that just about being washed away, literally. >> christiane, here's a country on the edge, a country that's 11 billion zz n debt to the imfp, hitting an surgery at home. then all of a sudden, pow, it gets hit with this terrible flood. there are 20 million people affected in the country. and the question that people are beginning to raise is, is the flood going to be the final additional thing that pushes pakistan into being a failed state? the army will have to focus on getting roads, food. the pakistani army. hopefully with help from the u.s. military.
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that means they won't be able to fight the taliban. i would expect there's an offensive in north waziristan against taliban and al queda this fall. i was going to go travel with them. i have a feeling the military will be too busy. >> maybe it doesn't matter, though. maybe the fact is, this is wishful thinking, but maybe the fact is, having all of this aid come in, from the west, and particularly from the united states, and it is our military -- >> right. >> and it's -- not just our military, it's usa i.d. and all of our humanitarian organizations, i worked with save the children there. we've been in pakistan for 30 years doing this kind of work. seeing that is more important than saying we can build a mosque in manhattan, in terms of dealing with the modern world. >> the aid is effective. to david's point the other danger is not just that the pakistani army is not in position now, to go on offensive against the taliban. i think the real danger is you find the local islamic organizations, extremist islamic organizations, turning out to be
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more effective, and helping in the west -- >> they made a lot of people angry. >> yes. they have made a lot of people angry. >> i am not saying they are. i think that that is -- that's why western support, particularly u.s. support is so important right now. u.s. policy has to try hard to make the pakistanis feel it is not purely a utilitarian relationship. it's not just transactional. that america cares about pakistan, not just because of its relationship to afghanistan -- >> because it is transaction. >> it is vital. >> it's vital to our interest and the interest of the world. >> i think it has to go beyond that. >> pakistanis are going to say -- >> we barely have any time left. but 30 seconds to talk about russia about to put the nuclear fuel into the brashear plant in southern iran. >> if you want one more piece of bad news this week for the obama administration is that russia who has been cooperative on iran, which joined us on u.s. sanctions, tougher than people expected decided it's going to
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ship next week, begin to operationalize, nuclear reactor in iran, civilian nuclear reactor, and that's the last thing this administration would have wanted. >> on that note, on that note, the "roundtable" continues in the green room, at abcnews.com/thisweek where you can also find fact check. in conjunction with politifach. also on our website. dramatic images in russia. wildfires choking smoke and record high temperatures, led to hundreds of debt in moscow and drought destroyed a quarter of russia's crop. it's banned exports and raising concerns of a global food crisis in the fall. we'll be right back. hi, may i help you? yes, i hear progressive has lots of discounts on car insurance. can i get in on that? are you a safe driver?
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♪ and harness our technology for new energy solutions. [ female announcer ] around the globe, the people of boeing are working together, to build a better tomorrow. that's why we're here. ♪ now, in memoriam. to hell with politics, just do what's right for alaska. >> no! no, i will not.
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>> i will wash away the mud that has been splattered upon my reputation. >> [ speaking in foreign language ] behold! behold. we remember all of those who died in war this week. the pentagon released the names of 11 soldiers and marines killed in afghanistan and iraq.
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we'll be right back. and now, the "sunday [ male announcer ] presenting the cadillac "summer's best" sales event. a fantastic opportunity to get 0% apr financing on every new 2010 cadillac model. like the cts sport sedan. the most acclaimed vehicle in its class and a "car and driver" 10 best, three years in a row. or the all new cadillac srx luxury crossover. and even the most acclaimed luxury suv ever, the cadillac escalade. summer brings out the best in all of us. hurry in to get 0% apr financing on every new 2010 cadillac during cadillac's "summer's best" sales event, going on now at your cadillac dealer. ♪
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and now, the "sunday funnies." . >> ramadan started sunday. and it commemorates the month in which the angel gabriel first revealed the core rkoran to the prophet mohammed. i guess not in cartoon form. a lost people are talking
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about stephen slater. a polite attendant that lost his nut after an alteration. they're thinking about making him the next governor of alaska. >> "the wall street journal" said there's a movement to replace joe biden with hillary clinton on the democratic ticket in 2012. hillary clinton said come on that's just silly. make it so. >> according to the u.s. and iraqi commander, if the united states pulls out of iraq, iraq's borders will be vulnerable. they say they won't be able to stop anyone from entering their country. join the club. okay. welcome to the world. thank you very much. and we'll be right back with our picture of this week. [ male announcer ] the financial headlines
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so you can do what they're doing in toronto... and build a smarter hospital. let's build a smarter planet. finally this morning a picture of this week. almost 1,000 u.s. service members undured major limb amputations since 2001 half caused by ieds. we leave you with images of an extraordinary accomplishment by three disabled veterans from three different war, iraq, afghanistan and vietnam. in six days these veterans climbed to the top of mt. kilimanjaro in tanzania, they did it on prosthetic limbs, because they only have one successful limb between them. they did it to encourage veterans to lead active lives.
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