instead, we had had greece in between. that really upset the king. -- the game. countries have had to stabilize their own. there is always speculation. now they are in this different game as the dow jones reporter trustee to. there are different policies and countries to cope with the pathway along the route from pittsburgh to a torrent of. host: in the "philadelphia inquirer." obama meets resistance. why seen meeting this resistance? guest: the debt levels are higher and of greater concerns. you have david cameron in britain who just announced with liberal democrats that new budget for britain from a very austere. q. have elections for the president of germany. angela merkel's chancellorship hangs in the balance. these are real? -- facts of domestic finance. one is the creek crisis and the impact. and the uk. the second is that they have had to cope with the debt issue in a significant way. i think in the short run, you will have this difference and maye something that angela merkel may be well advised to easy up a bit on her stance on austerity. it may help her

the uk market was over valued and those came down and greece borrowed too much and spent money without really paying attention to it's finances, so in some ways it's similar but it's really not because of the u.s. and what we did in our housing market. now they're sort of in the second phase which is their own problem. host: just to build off the last two callers. what internattonal provisions are included in the financial regulations deal struck at 5:40 am this morning? guest: what do you mean why i want independent? host: anything you can speak to that deals with international financial? guest: not that i can think of. well, i mean there's sort of discussion of resolution and sort of how to wind down systemically important banks and institutions and that, those are all international active stuktss so that addresses some of the issues. but there is, there are separate efforts to set up regulations for all banks globally that would be international and you know there's a committee on banks supervision that really brings together all the regulators of european asian and u.s. together an

pensions, and salary paid by other citizens in the midst of the worst economic meltdown in decades in greece. in america, the tea party protesters are protesting exactly what the greeks are demanding. it's an extraordinary juxtaposition. it's american exceptionalism at its best. or if you don't like the american tea party protesters, perhaps at its worst. host: first phone call for arthur brooks. louise on the republican line, new york. go ahead. caller: i just wanted to say that i'm a republican. but with a small r. and i believe that actually social democracy is acting evolutionary process from this unfetered capitalism. you look at europe it started out, you know, with this kind of -- you know, the market rules, adam smith kind of, you know, machiavellian mentality. and it evolved into an economy that protected its people and had more social policies. so i do believe that is evolution of capitalism. if you want to to know how the road, ask somebody coming back. that's where europe has been. i don't believe that if you stick with capitalism in this form, and the free market enterprise in t

guest: we're not greece. e i know your viewers know what's happening in greece that the debt has gone so high that it's caused massive decreases. and they are almost -- and the titanic is exactly what this gentleman said, the long-term costs of our entitlement programs, the pension programs, the health care programs are simply unsustainible. we'd have to tax over 507 of everything our children own just to pay for these programs. so it would be to fix these programs, get the spinding under control and by the way, it's not just in washington. it's as i look in the health care you've got a lot of cities like california and new york that are on the verge of bankrupty. new york declared they cannot pay their bills any foe with people starting to say, no. we can't keep spending. one of my heros right now by the way around the country is governor chris christy of new jersey who has really taken on a terrible situation that he inherited from jon corzine this year and starting to take on the -- host: what is your view

host: he says hey, remember the riots in greece? they were government pensioners. guest: i do not believe we will get to a point like that in the united states. you can certainly see in ceetain communities where you are either facing an increasingly significant taxes at the state level or property taxes at the local level or if there is not a significant tax increase and there is schools closing, teachers laid off, parks closing. something has to give. the question is how does that manifest itself? we do nottknow, but some level of protest which we have seen already a little bit in some communities. see a greece-like situation.eve- host: john joins us from california.+ he is the last caller caller:. hi. how are you. i am a vietnam veteran. i can no longer walk. i am on a pension from the va. i get less than $1,000 per month. month.

looking at the games themselves, south korea defeated greece 2-0. france could not beat uruguay. that tells us something. the world is shifting. this is a very big boost for africa. i lived in africa. i know this is a very, very, very important issue. for the first timee africa is given the opportunity to host the world cup. i hope the olympic games will be next. the implication of not hosting these games speaks to a lack of infrastructure. someone made mention of sex slaves. that and -- that exist in the u.s.. the corporate interests? it is good that some of them left when mandela took power. host: thank you, color. guest: he is right. this is what -- thank you, caller. guest: he is right. it is a message that we think you can't do it. he mentioned that the world is -- he read that you can add to it. he mentioned that the world is changing. there is a movement toward parity in international soccer that is probably reflective of a broader international trends. the game was dominated by europe, and, then, these two latin american power's, and yet the last world cup, teams from tur

you can see it happen over in greece now, and it is coming. they are organizing, talking about taking to the streets. i think we should be very concerned about violence in the country. host: where are you reading that they are organizing and talking about coming to the streets? caller: recently, van jones said annette same political conference in washington where they were heckling nancy pelosi, that something changed last week. and there is more chatter on website about taking it to the streets and doing it like they were doing it with -- in greece. host: joe, your thoughts this morning. caller: i have been a union member for 30 years and i think just like any other large organization, its members have to be active and tell their leaders how they want to represent us -- not just elect somebody and said back and wait for the world to turn up the way they want to. if it wasn't for the unions in this country, everybody would be making about $6 an hour and have no pensions and have no health insurance. a just wanted to let you know, when rush lim

i want to make sure that we do not have a country where i'm worried that what we've seen happen in greece is a coming attraction of what can happen in the united states. i was in the state legislature for five years in wyoming. we set up programs to try to give incentives for young people to come and practice medicine in wyoming. you mentioned what governor perry has done in texas. we've done some things in this state to get people into areas where they don't have many doctors with forgivenesses for loans, so states are doing that. i think that's a good thing. i agree with you, people go into medicine for the right rope and we had that previous call from north carolina who talked about different profession. i think 350e78 go into medicine for the right reasons. they look at specialties based on what kind of debt they have, how they can deal with that debt and how they can provide for their families. the final point i think you made had to do with contributions. all of the contributions i've ever received that's on the web site, you can find it and go through it and look at all the numbers

to some extent you are seeing that in europe, portugal, italy, greece. they made promises that they could not afford to keep. to mix metaphors, the chickens have come home to roost. they have a huge problem the hands. we must make sure that as a society we find more intelligent, smarter ways to get more effective health care and retirement security of more effective costs. anyone who avoids dealing with that is condemning future generations to lower standard of living. frankly it is tantamount to generational theft in should not become susceptible in america. host: rocky mount, good morning. caller: thank you for taking my call. i wanted to address what the congressman said. i notice that he said the government's cannot plug loopholes in he does not trust government because they cannot plug the hole with the oil coming out. you know, government is not in the oil drilling business. mainly because republicans do not want them in there. because they want the private sector. they want the government out. all of a sudden you are saying the government cannot p

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. 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. host: the phone numbers are on the bottom of the screen. we are talking about china's economy and specifically the impact object u.s. trade. nicholas lardy has a ph.d. from university of michigan, talked in many places, currently senior fellow at the peterson institute for international economics. back to the u.s. an china, you said the chinese are not as concerned about the u.s. as they are with europe. they feel fairly confident. but explain in laymen's terms the connection between the chinese economy and our economy. why are the two so linked? guest: the main linkage is trade. 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 unit

are frankly underfunded to the extant that within the next 10- 15 years, we could have several mini-greeces at the state level pare. host: as a state, i am not obligated by the law to fully fund might pension plan? guest: every state is different with respect to its funding obligations. there are funding standards but there is great flexibility. reason we are about to be in a pension funding crisis -- the reason we are about to be in a pension funding crisis is it is really multifaceted. the stock market crash in a 2008 really affected pension plans in a significant way both public and private. secondly, pension plans when times are good in the public sector really added and made benefits richer. sometimes it was retroactively. people fought the good times would last forever. they had surplus assets. they provided ancillary benefit per is. states have been implicated in certain pay to play arrangements which are costly. finally, there seems to be the ability and the public pension system of individuals spiking their benefits. in other words, the benefit one receives is determined very much

i am not one of those hysterical that opponents of this, but if the sovereign debt crisis in greece, italy, spain, and portugal have a lesson i, tn we should be able to learn something from that. i am talking about saving money that could be used to reduce the national debt, thereby reducing our interest payments. i am not talking about socializing anything. i am talking about a more productive government that is able to faithfully execute all of the delaware laws. i think that is a win-win benefits. if we can save a nickel in making government more efficient in these times, it cannot be anything but positive, especially if we clarify what government is supposed to do and give it the resources to get it done. host: phil on the republican line. caller: i like hat you are saying, but i do not know how you begin to dismantle something like this i live in a small town in kansas. we have that in issue with the school district here. there was a real budget shortfall. i dug into the numbers and found out they had a strategic planner. i thought that there was one, but there was a strategic p

when europe had its crisis just the last few weeks with greece looking at a possible default. concern over contagion spreading to the so-called pigs countries, we saw that tank our stock market. so, these things are interconnected and yes, we have to take your home base, the need to understand we have to look at a world regulatory structure and economy. host: next, an opinion piece this morning from "the wall street journal" posing these questions with regard to the fiasco. one wonders if it would have been possible for ages to sabotage the ships before they left the ports of this incident would never have occurred. or failing that, to allow the ships to have been operable in gaza, and then to disable them so as to prevent any further trips. guest: i think they're many questions to be asked about the flotilla and its intent, why it was on board, why the choices were made. we know two things this morning. one, there was a tragic loss of life in no one can be happy about that. everyone must be terribly sad that it occurred. the second thing we know is that israelis landed on tho