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tv   [untitled]  CSPAN  June 15, 2009 8:30am-9:00am EDT

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worked. if the bernanke fed, i think, is redefining the role of the fed in the economy, in the government's, clearly the listener thought it was not a very good idea. but i do think at the very least we need a public debate about it. host: which european central bank has taken the most active role? guest: there was a european central bank that was created when they create a single currency, that represents those countries -- the majority of the countries that have the euro as their currency. and there was some criticism of the european central bank. for many years, they were too cautious, dominated by the german influence, fear of inflation over everything else. yet, in the last six months or show, the european central bank has been fairly forward leaning. they have not cut interest rates as strongly as the have and the united states, probably won't. but they have begun to do
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things to that -- is essentially buying bonds -- that no one thought they would do before. and i think they now are one of the big winners in europe out of this crisis. their power has been consolidated, respect for them has increased and i think going forward they will be a strong european institution with a global reach. host: joe in cedar rapids, iowa. independent. are you there? go-ahead. caller: my question is with the world trade growing, and the whole earth seeming to get smaller with the economy, do you see that in the future that it will go with a new world money? guest: one thing, just to make
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sure our listeners understand, world trade is not growing any more, it is shrinking. but the list is right, over time it has increased dramatically. there have practically been countries that fought that they might be able to replace the dollar as the world's premier currency, japanese thought it at some time in the late-1980s. some officials raised questions about strengthening the chinese currency in global affairs. some talking about whether there should be a global currencies like sdr's, issued by the imf, which the not serve a function of the currency but something you can eat all that into a currency. my sense we are a long, long way before a global currency because one of the problems we face is that a currency has to have a monetary policy behind it. what is the price? is the interest rate 1% or 5
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percent or whatever? we already in the united states have a problem trying to set the interest rate in the united states because west virginia may be in a crisis at california's booming. what you do, low or raise the interest rate? you try to do it on a global basis, and argentina could lead lower rates and estonia could need higher rates and how the balance the leaves? post co what are the chinese asking for internal their correct -- host: whether the chinese asking for for their currency? guest: they are concerned that they own treasury bills denominated in dollars, and if the value of the dollar would decrease, the value of assets would decrease. so, while this has long been a problem, they have been more vocal about recently. listeners woodnotes that the last couple of weeks we have not heard this from china because the dollar has gone back up.
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so all the sudden interest are different. but it is a valid issue that as china becomes a bigger player in the world economy, why should they always land and other people's currencies? i would not be surprised if someday, not immediately, the chinese say if you want to borrow money from us, you repay it and -- so we have no exchange-rate risk. host: did the europeans ever had that aspiration for the euro? guest: some have suggested that. the euro has been very strong against the dollar in the last decade or so, but it has not become widely used enough to justify that, nor the yen. there was wild speculation but it never grew into an asset the people want to hold. host: north carolina. caller: i have a question and
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comment. i noticed during the bush administration, he pushed free- trade very hard -- any talk about new world order. is this the new world order he was pushing for back then? and i got clinton threw bipartisanship to sign off. -- and they got clinton threw bipartisanship to sign off on it. guest: i don't think that there is an imminent new world order. i do think that the reality is that as the economy becomes more global, we become innovative through technology and so forth, that there is a need for decision making that takes plans beyond national borders. this makes people very nervous,
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understandably so, because the further away the decisions are made, but less influence if one believes one has and probably less influence one really does have. one of the problems we faced in banking. the little town i grew up in in western pennsylvania, i saw the banker walk to work every morning. he had a personal relationship with the guys who lends money to. my father was one of them. that bank was sold to a bank in pittsburgh, then to a bank in europe and then london -- the people making those decisions in london had no connection to the little town. the cost of money was low and the little town as a result of globalization, the people had less commitment to that little town. caller: helping to make my point of -- i think capitalism is great -- what happens here i
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think is agreed had taken over and i think the last eight years they sowed the seeds for that, did not tax people fair and you started to look at middle-class. rich people they pollute more, destroy the economy more -- they should pay more taxes. host: i want to ask your thoughts on how secretary shall of -- secretary geithner back from g8 meeting, how is he viewed by other european finance ministers? guest: i think they respect his experience, his time of the new york fed. the fact that he has personal appearance and asia, having lived in both china and japan. they respect his links to larry summers and the white house.
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my guess is -- and i have not talked him personally about this -- that some of 7. geithner's initial uneasy public performances were not that settling for them. you want the treasury secretary of the united states to come off as granddaddy who inspires confidence. but don't think you see those kinds of performance is any more. and i think it has been reassuring. host: a buehler and princeton, new jersey -- guest: i don't know, i am not in a stock market -- in the stock market's sudden i'm a good advisor on that. host: bruce on the republican line. caller: i just wonder where uc -- i am from wellington where dhl made the decision to close 10,000. we felt it was somebody from germany who made that decision
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instead of somebody who knew us, most of the people who worked for dhl wonderful people. we thought it was from afar. with so many of us unemployed workers in america now, already the obama administration has made a decision on health reform that is really helped. i just have a feeling that nationally with so much unemployment going on, what is your national field on -- you have 10 percent of america on an unemployed. how does that affect everything on a global picture? guest: fortunately -- or unfortunately for our viewers delaware -- the rate is not 10 percent but he is right, i think it will reach 10 percent before
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this is over. what happens is even if the economy begins to rebound, the unemployment rate continues to grow for a period of time. the bigger danger is that in our last two recessions, we had jobless recovery spirit we had a pickup in economic activity, but we never quite return to the level especially of manufacturing and plummet that we had prior to that. economists laude this, they call it improvements in productivity. in fact, it is good to learn to do more with less. but for individuals, it is a horrible outcome. you don't benefit from the cup -- recovery in the way you hoped to or in the way you haven't passed. one of the challenges of the obama administration is where do the jobs come from to employ people again after this recession. an earlier caller talked about investment in green technologies or green jobs. i think it is a very important
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opportunity. we shouldn't be overly excited about this. it probably won't create that many jobs. but it will create some. certainly if we were more ambitious in our use renewable energy and conservation strategy, we could create significantly more jobs. the germans, for example, have been very vigorous and rick -- support of renewable energy and dramatically increased the number of jobs in renewable ended -- energy. but the real challenge, as the listener suggested, is what about employment. do we face a prospect that the europeans have had to live with and the last generation of permanently high unemployment? it does seem to me that is not an outcome that we should accept. host: bruce stokes rights for "the national journal." this article we have been talking about, europe must jointly tax-and-spend. we have a link on our website,
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hope you come back and see us again. we will take calls for the next 20 minutes or so, focusing on a faa and a meeting they have today in response to some of the plane accidents that have happened among regional carriers. here's a look at "usa today" and their opposing views on the faa and regulation of regional carriers feared to often, faa puts the industry concerns about passengers'. they are writing about the summit meeting happening today. pilots, unions, and other industry groups looking at improving safety at regional carriers. while the goal is laudable and flying in america at remains extraordinarily safe, the meeting raises the question of where regulator hat -- regulations have been one of these problems have been festering for some many years. they looked at a number of issues that they see as problems among regional carriers, including hiring, training,
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fatigue, and salaries. meanwhile, an opposing view from the faa. they write, the faa is carefully examining fatigue, training, and other regional issues. we will continue our vigilance, is there headline. we at the faa more and the tragic loss of the colgan air flight 3407 deeply. this is an agency dedicated to aviation safety. any loss is felt keenly by us all. in the mid 1990 -- 1990's, the faa revised its regulations on air carrier safety standards to reflect one level of safety, requiring regional air carriers to operate under the same rules and at the same level of safety as the major airline counterparts. we want to ask your thoughts on airline safety in particular with -- excuse me -- with regional carriers.
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the associated press reports this morning in the wake of the iranian election, the iranian embassy in moscow said president mahmoud ahmadinejad has put off a visit to russia. and it is unclear whether he will come at all. again, we will get to your phone calls in just a moment. a couple of other stores to look at from the front page this morning of "the denver post." the report on a story happening in the denver area but also nationwide. rental fraud find home on line. skimmer's put ads on creag list for properties owned by someone else. with the economy forcing increasing number of people to rent homes, scams are proliferating online, a particular craig's list. real-estate brokers are seeing more of the homes they have listed for sale poppas rentals on the on-line classified site. potential renters are showing up of the homes telling the owners there responding to an atom
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craig's list. and in one instance, a couple moved into a home, unknown to its offsite owner, after responding to a fraudulent add on craig's list. also this morning, we ask for your tweets on twitter. south carolina is reporting that state will use twitter incase -- twitter will be used to help the south carolina residents get storm updates. this morning and afghanistan been a commander takes over. the new american commander in charge of afghanistan, stanley mcchrystal. he will oversee all u.s. and nato troops in the country to fight it taliban insurgency launching more tax than ever. mcchrystal took command from general david mccarron and during a low-key ceremony earlier today and kabul. mkiernan was fired one year into a two-year assignment.
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we have a pilot on our independent line. caller: i am democrat, but that is probably irrelevant. the subject to talk about -- you are talking about this morning is airline safety. back in the 1990's when the faa was a collusion of the airline pilots association came in with this "1 level of safety, while the one thing they did was impose a retirement age on the 135 or air taxi carriers, which they had and the major airlines. there was never any reason for this other than the desire for younger pilots to advance to the captain's seat. we've been advanced to age 65, but only because the europeans went to 65. but getting to the commuter situation, there are a two major problems. one is that you force the older pilots outcome of the ones with
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more experience, and then there is another factor, which i don't believe the major airlines should be able to paint the name of american, delta, continental connection on the side of the plane and staff at four people -- with people whose experience level is lower. pilots have to start off somewhere with low or experience and gain experience. the other thing that has been a major problem and no one has mentioned it, is the scenario situation, which basically drives the lower and less experienced pilots who fly with each other on the more demanding back side of the schedules. host: what does that term mean? back side of the clock? caller: nighttime flying, like the folks going in to buffalo. what happens is someone who is senior -- they may be only senior to you by a day -- might be able to get a schedule with 20 days off a month.
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and the more junior people -- and they may only be relatively junior -- may be stuck with these very undesirable, what we call read i -- red eyes. schedules are less productive. senior guy can fly and go to a motel -- so the schedules need to be homogenized. the duty needs to be spread among the junior and senior people. either through pay or through regulation, the junior people need to be mixed in with the senior people so that they are able to get some mentoring. i will leavitt at that -- i will leave it at that. host: thank you very much. here is what "usa today" writes about their view of the hiring situation with pilots, and particularly talking about regional airlines. i want your thoughts on how safe you feel. " the usa today -- "usa today"
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calling for tighter regulation and more focus. about hiring -- almost every serious regional accident in the past decade involved a pilot who repeatedly failed steel -- skills test known as check rides. the colgan air capt. in fact had five failed rise and in a 2004 crash, another captain had an astounding seven. airlines say they didn't know about these check ride, in part because 1996 law designed to correct that problem as dangerous gaps, when the faa has been warned about four years. oakland township in michigan. tanya, good morning. caller: i never thought i would say i missed the good old days. it has just been up holland the last eight or nine years in our country house everyone -- how everyone is rushing to make a buck and the customer is bottom on the line for receiving attention.
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particularly incensed when i read that major airlines slide through other countries and have mechanics that are inexperienced working on the plains. and how of repair schedules are not maintained with any honesty, i guess is the word i really wanted to say. i think everyone is rushing to make the bulk and the poor customer is out here in limbo because even when they tried to pass laws so that the airplane's would not inconvenience the passengers by being on the tarmac for six to seven hours, all of those things, they are talked about and two weeks later they are forgotten. i think they really need someone
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to really tighten up on things and particularly the regional airlines. i would be deathly afraid to fly on those, especially when you hear about the pilots that they allow to fly, men that had failed tests, i think we really need some very serious overhaul in the entire airline industry. " scud that call from oakland township, mich. -- host: that call from oakland township, michigan. " usa today" editorial board talking about dangerously long work days. they also have been cited as years as the cause of several crashes. but when the faa proposed changes to adequate work rules in 1995, the industry and piloted the agency with a barrage of criticism and the faa folded. let me show you a little bit about the faa's response to the issue of fatigue. they write in their peace in
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this morning's "usa today," again, and two countering views on airline safety particularly with regional carriers. one of the issues that came out of the ntsb investigation is the issue of pilot fatigue. the faa has long held that it is the responsibility of both the operators and flight crew member to prevent fatigue not only by following regulations but also acting intelligently and continuously while serving the traveling public. tampa, florida. john on the independent mind. caller: of one to make it, that everybody has the absolute right to choose the airline they fly on but a lot of people will buy a ticket on continental and delta and all of a sudden you are flying regional jets. host: and that his, you don't have a choice. what a cut you just have to look at what the ticket says. if most -- caller: you just have to look at what your ticket st. regis says. host: but if there is no other
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way to get to some parts of the country other than using the regional carriers. caller: that is true, as some places you don't have a choice, but in a lot of flying the last couple of years, the mainline route has been replaced with a smaller, regional jets going from houston to york -- newark, used to be heavy carriers and now to save money the replace the larger aircraft with the regional airplanes. host: that a cut on the democrats' line. -- vivica. caller: putting out a national call for amtrak and the high- speed trains that they have in japan, it would not cost any more to buy a ticket for them and to implement as much money as we spend on the airlines and
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their big failures. it is safer to travel on the ground. the contract up to 200 miles an hour. of course, it would not work for international, but for national journey is, i think that the airlines and the businesses, the lobbyists that kept amtrak down, they are always down in them and saying it is not feasible -- yes, it is. it would save lives. and in the end, i think it would save money. host: minnesota, the morning to tom on the republican line. caller: the of -- i am a retired locomotive engineer on the railroad and we have very similar issues as far as hours of service. the younger people having to work the back end of the clock. it is a serious issue, a money issue. you can't beat around the bush about that.
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they would like to have an older fellows leave the service of railroads or airlines. host: who you work for? caller: a very large red road and that u.s., united states. host: thank you for your call this morning. we are looking at an article @ "usa today." here is the front-page of the money section today, about the chinese. car sales boom, reshaping the way of life. china's love affair with the automobile is thriving despite the global recession. it is changing the way people live here in ways reminiscent of the usa potsy bloom in car ownership after world war ii. a couple of other stories, from of a "of the houston chronicle." yesterday was flag day. the front-page have a picture of the flag of going up on a front porch in the houston area. we will also have a look at "the baltimore sun." their newspaper had a picture
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from fort mchenry as high school students from mississippi help out in the flag day celebrations at fort mchenry just outside baltimore. ohio, good morning to carl. make sure you turn down your television or radiator -- radio. caller: well, the federal bureaucracy -- the faa is equivalent to the department of education, and these are failed bureaucracies. you have the car czar and education czar -- we need to get rid of them. host: say the faa is not doing their jobs on the regional carriers? caller: no, we need to go back to the imperial image of america. that means allays a fair. -- lee is a fair. less government. leave the banks alone and leave
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the railroads alone. we probably could have passenger trains again. host: back to "usa today" and that opinion peace and regional carriers. the editorial board calling for more regulation or at least closer scrutiny on regional carriers. about salisbury, a dirty little secret in the airline industry is the regional pilots awfully woefully underpaid. the " pilot in the colgan air crash was earning less than $24,000 a year. kansas city, dawn on the independent line. -- don. caller: this would apply to everything you are talking about, the whole regulation thing. as long as we put regulations out there, there will always be another republican president to come along and tell the regulators don't regulate. so it does no good. just like with health insurance. in a, they can regulate them but
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they will find a way around it and you have another republican president telling them not to regulate. it does no good to regulate. you have to change the system. you've got to put some of the insurance, is out of business. i am not showing you cannot have a private insurance situation, i'm just saying that just regulating does not work. you've got to put competition in again. host: thank you for your call. we come back with in the proposed new regulations on the financial markets. phil mattingly has an extensive piece in "congressional quarterly weekly." we will talk about with him in a moment. first, the latest news from c- span radio. >> in afghanistan, the general's family mcchrystal took charge of u.s. and nato troops today. the change of command the pentagon hopes will turn the tide in an increasingly violent eight-year war. general mcchrystal took command from general david mckiernan
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during a low-key ceremony in kabul. he was fired last month by defense secretary robert gates one year into a two-year assignment. the u.s. and south korea have been pointed 11 underground sites in north korea where it it could conduct a third nuclear test. this, and of a summit between the two allies on the north's growing atomic threat. south korean president is on his way to washington for a meeting tomorrow with president obama appeared this just in it, prime minister von brunn's office says britain will hold a long- awaited in kuwait into iraq war -- prime minister board and brown. he pledged to examine mistakes made during and after the 2003 invasion. lawmakers and anti-war protesters have called for the inquiry to be held in public and to scrutinize what they say were a wide range of errors and post-war planning. the prime minister will make


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